LNG Marine Fuel Institute Welcomes BHP Tender for LNG-Fuelled Bulk Carriers

The LNG Marine Fuel Institute (LNG MFI) welcomes the news that BHP has commenced a tender process for LNG-fuelled bulk carriers to operate from Australia. 

BHP is a founding member of LNG MFI, which has a mission to ensure LNG becomes the fuel of choice for the shipping sector addressing public health and greenhouse gas emissions, replacing imported heavy fuel oil with Australian gas and creating a new LNG bunkering industry, placing Australia at the forefront of this exciting initiative.

LNG MFI Chairman Richard Sandover said:

“BHP’s decision to go to open tender to LNG and shipping providers globally, reflected the joint efforts of the Australian mining and LNG industries to support the transition to a cleaner and greener future. 

“This is a significant step towards realising an opportunity to reduce pollution and greenhouse emissions from the shipping sector.

“As one of the world’s largest charterers of shipping capacity, BHP is sending a clear message that LNG is the clean transitional transport fuel of the future.

“The uptake of LNG as a shipping fuel is already growing in Europe and the US, and BHP’s commitment is a vital step in the move to LNG fuelling the International shipping trade in the Indo-Pacific region.

“Australia is a leading producer of iron ore and LNG. Using our LNG to ship Australian iron ore to customers around the world is simply logical,” he said.

Replacing the heavy fuel oil traditionally used in bulk carriers with LNG virtually eliminates the emissions of sulphur and particulates that are proven to lead to thousands of premature deaths linked to air pollution. It also provides a significant reduction in greenhouse gas emissions.

The shipping lanes from Western Australia’s Pilbara region to Asia are the busiest bulk commodity routes in the world.

In an effort to convert the trade route to cleaner-burning LNG fuel, partners including BHP and other LNG MFI members, Rio Tinto and Woodside launched the ‘Green Corridor’ Joint Industry Project in early 2017. The project successfully demonstrated the feasibility of using LNG in the bulk carrier ships  which currently use around 5 billion litres/year of imported heavy fuel oil transporting iron ore from Australia to international markets.


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c/- Jackson McDonald,
Level 17, 225 St Georges Tce Perth, Western Australia 6000