BHP, the Australian commodities and energy company whose assets include a stake in the North West shelf liquefied natural gas export plant in Western Australia, has issued the world’s first bulk carrier tender for LNG-fueled transport for up to 27 million tonnes of its iron ore.
“Through this tender, we are seeking potential partners who share our ambition of lowering emissions to the maritime supply chain,” said BHP.
The company said the tender was open to a select group of industry leaders, from ship owners, banks and LNG fuel network providers.
The apparent aim of the tender is to find a partner for an LNG-powered newbuild iron-ore carrier, or a shipping company willing to order one with a pre-booked charter from BHP.
BHP said that introducing LNG-fueled ships into its iron ore maritime supply chain would eliminate nitrogen oxide and sulphur oxide emissions and significantly reduce carbon-dioxide emissions along the busiest bulk transport route globally from Western Australia to North Asia.
As well as LNG-fueled transport for up to 10 percent of its iron ore, the tender seeks other innovative solutions that can lower greenhouse gas emissions and increase productivity from BHP’s freight requirements.
“We are fully supportive of the International Maritime Organisation’s (IMO) decision to impose lower limits on sulphur levels in marine fuels,” said Rashpal Bhatti, Vice President, Maritime and Supply Chain.
“While LNG may not be the sustainable homogenous fuel of choice for a zero carbon future, we are not prepared to wait for a 100 percent compliant solution if we know that, together with our partners, we can make significant progress now,” added Bhati.
“This new tender adds to the work BHP is doing with customers, suppliers and parties along our value chain to influence emissions reductions from the transport and use of our products,” stated the BHP executive.
“We recognize we have a stewardship role, working with our customers, suppliers and others to influence emissions reductions across the full life cycle of our products,” he explained.
BHP, whose main offices are in Melbourne, London and Singapore said that as well as making investments in emerging technologies, it sets GHG emissions reduction targets for its operations and works across sectors to strengthen its global policy.
