BHP welcomes world's first LNG-fueled iron ore carrier

Australian mining giant BHP has unveiled MV Mt. Tourmaline, the world's first LNG-fuelled Newcastlemax bulk carrier, with the vessel to transport iron ore between Western Australia and Asia, the company said Feb. 7.

BHP -- the world's third-largest iron ore producer -- said it has chartered five LNG-fueled Newcastlemax bulk carriers from Eastern Pacific Shipping for five years and awarded the LNG fuel contract to Shell.

The vessel has arrived at Jurong Port in Singapore for her first LNG bunkering operation which will take place through the first LNG bunker vessel in Singapore, the FueLNG Bellina, the company said.

FueLNG, a joint venture between Shell Eastern Petroleum and Keppel Offshore & Marine, operates the bunker vessel, it said.

After LNG bunkering, the 209,000 deadweight mt vessel will leave for Port Hedland in Western Australia for iron ore loading operations, BHP said.

"These LNG-fuelled vessels are expected to reduce GHG emissions intensity by more than 30% on a per voyage basis compared to a conventional fuelled voyage and will contribute towards our 2030 goal to support 40% emissions intensity reduction of BHP-chartered shipping of our products," BHP Chief Commercial Officer Vandita Pant said in a statement.

Last month, BHP said it intended to purchase four battery electric trains and conduct trials at its Western Australia iron ore rail network.

The company said at the time it will test the trains performance and emissions reduction capabilities in delivering iron ore from its Pilbara mines to the Port Hedland export facility, in Western Australia.