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BHP Unveils World’s First LNG-Powered Ore Carrier

BHP chief commercial officer Vandita Pant said the LNG vessels would lower emissions by about 30% per journey. “That reduces our emissions for our customers and suppliers.”


Mining giant BHP said on Tuesday it would review its coal production after being shaken by a steep rise in some Australian royalty rates.
BHP’s fourth-quarter results showed strong performances by coal mining and copper mining, offset by weakness in iron ore output and other metals. File photo: Reuters.

 

BHP Group unveiled the world’s first liquefied natural gas-fuelled bulk carrier vessel in Singapore on Monday, one of five vessels that the mining giant will take delivery of in 2022 as part of efforts to curb supply chain emissions.

The 299-metre (981 ft) long Mt Tourmaline – a Newcastlemax ore carrier built by Eastern Pacific Shipping in China – stopped off in Singapore to take on LNG fuel. It will head next to Port Hedland in Western Australia to load iron ore that will then be shipped to customers in China.

BHP, which is the world’s largest miner and shipper of dry bulk commodities, is targeting net zero greenhouse gas emissions from its value chain by 2050.

It views its fleet of LNG-powered bulkers as a key means to reduce emissions of carbon dioxide and other pollutants over the near term even as a majority of its fleet still runs on high-emitting fuel oil.

BHP chief commercial officer Vandita Pant said the LNG vessels would lower emissions by about 30% per journey.

“That reduces our emissions for our customers and for our suppliers,” she said at the vessel launch at Jurong port in Singapore.

While the vessel can also still burn traditional very low sulphur fuel oil, BHP intends to use LNG to power Mt Tourmaline as much as possible, said Pant.

BHP’s head of maritime supply chain, Rashpal Bhatti, said the engine and tank set-up on the new vessels will allow the company to adjust the type of gas used from “LNG as we know it right now” to more energy dense and bio-LNG fuels that are expected to be developed in the future.

It can also be retrofitted with “a little bit of capital expenditure to also burn ammonia,” he said.

 

Graphic by Richa Gandhi.

 

• Reuters with additional editing by Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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