BHP company has awarded Shell company its first liquified natural gas (LNG) supply contract for five-year terms to fuel BHP’s carriers which will transport iron ore between Western Australia and China from 2022, a press release reported.

BHP’s Chief Commercial Officer, Vandita Pant, said: “The LNG bunkering contract marks a significant step in how BHP is working with our suppliers to reduce emissions across the maritime supply chain.”

“The LNG bunkering contract will enable BHP to manage fuel supply risk, build LNG operational capability internally, and also help to strengthen the emerging LNG bunkering market in the region. This contract is expected to form up to 10 per cent of forecasted Asian LNG bunker demand in FY2023,” Pant added.

For his part, Steve Hill, Executive Vice President of Shell Energy commented: “I would like to congratulate BHP on reducing emissions in their maritime supply chain with the world’s first LNG-fuelled Newcastlemax bulk carriers. Decarbonization of the shipping industry must begin today and LNG is the cleanest fuel currently available in meaningful volumes.”