Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

BHP to receive 3 more LNG-fuelled bulk carriers in next 6-9 mths - exec

Stock Markets Oct 04, 2022 15:23
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Visitors to the BHP (formerly known as BHP Billiton) booth speak with representatives during the Prospectors and Developers Association of Canada (PDAC) annual convention in Toronto, Ontario, Canada March 4, 2019. REUTERS/Chris Helgren

By Jeslyn Lerh and Florence Tan

SINGAPORE (Reuters) - BHP (ASX:BHP) Group expects to receive three more bulk carriers powered partly by liquefied natural gas (LNG) in the next six to nine months, part of the company's plans to cut emissions from shipping, a senior executive said.

BHP, which received its first two LNG-fuelled vessels earlier this year, has locked in some term supplies of LNG buffering the company from volatile prices and is studying the potential for biofuels, Fergus Eley, BHP's Head of Maritime Enterprise, told Reuters on the sidelines of the Singapore International Bunkering Conference and Exhibition (SIBCON) 2022.

The world's largest miner and shipper of dry bulk commodities is targeting net zero greenhouse gas emissions from its operations by 2050 and started using LNG to fuel ships carrying products from Australia to China this year.

BHP will receive delivery of the three additional carriers from shipowner Eastern Pacific Shipping by mid-2023, Eley said.

LNG will be a key transition fuel choice for BHP, he said, despite the price volatility in the market over the past two years.

Asian LNG spot prices are at their highest on a seasonal basis since at least 2010, as Europe has been boosting LNG imports to replace Russian gas since the outbreak of the conflict in Ukraine.

"The volatility we are seeing at the moment is really unprecedented," Eley said. The company has locked in some term supplies to cushion the impact from spot price volatility while BHP takes a long-term view on the lower-emitting fuel, he added.

BHP is looking at opportunities for ships to take biofuel for bunkering in Singapore, especially for voyages to the east coast of Australia and to Europe.

"We have conducted one or two (biofuel) trials in the last 12 months, and we are now working on a larger contract," he said.

However, limited economies of scale remain a key challenge for the industry to adopt biofuel for bunkering in Asia, where it is still less readily available compared with Europe.

"We can help create that demand and we're doing so by forming these contracts where some of our vessels that go through to Europe, bunker here in Singapore with biofuel," Eley said. BHP hopes to reduce emissions by 20% for long-haul voyages using biofuel.

BHP to receive 3 more LNG-fuelled bulk carriers in next 6-9 mths - exec
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email