LNG-fuelled capesize development project planned
The joint industry project – involving mining companies Rio Tinto and BHP Billiton, Australian oil and gas company Woodside, Mitsui OSK Lines, DNV GL and the Shanghai Merchant Ship Design and Research Institute (SDARI) – will also assess the business case for LNG as fuel for capesize bulkers operating in the corridor.
The financial and technical feasibility study will examine a LNG-fuelled bulker operating from Australia – looking at factors including capital expenditure, operational costs and price sensitivities – in comparison to both a conventionally fuelled vessel and a LNG retrofit. A bunker supply chain assessment will identify key issues affecting the vessel design and business case.
The ship will be optimized for operations from and to Australia, and will be developed to a technical stage so that it may achieve an Approval in Principle (AiP) in compliance with DNV GL rules.
Mike Utsler, COO, Woodside, said: “LNG as a transport fuel option presents opportunities, both in a commercial sense and as a low-emissions alternative to other marine fuels. This joint industry project is bringing together mining companies, a shipowner and supplier, a ship designer and LNG producer led by DNV GL to explore how we can develop the LNG-fuelled ‘green corridor’.”
Morten Lovstad, business director bulk carriers, DNV GL – Maritime, added: “As we approach the entry into force date for sulphur emissions, we are seeing interest in LNG as a ship fuel start to climb again. As one of the largest LNG exporters in the world and with bunkering infrastructure coming online, Australia is well placed to support the bulk trade on the west coast with LNG as fuel.”
