Australian Miners Forge LNG Ship Initiative
Norway’s DNV GL, the leading international ship classification company, has formed a joint industry project (JIP) with Australia’s Woodside, mining giants BHP Billiton and Rio Tinto, Japanese shipowner Mitsui OSK Lines and China’s SDARI that aims to promote use of LNG as a marine fuel.
BHP Billiton and Rio Tinto are leading exporters of Australian iron-ore to China. Australia also exports coal and other bulk minerals too.
Named Green Corridor, the initiative will assess the commercial potential of LNG fuelled vessels operating between Australian and China, culminating in the creation of a next generation Capesize ship design that will undergo Approval in Principle (AiP) under the new DNV GL rules.
"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,” said Morten Lovstad, DNV GL’s maritime business director for bulk carriers, in a statement January 25.
Woodside this year is taking delivery of the first LNG-fuelled marine support vessel in the southern hemisphere. “We look forward to the findings from this joint industry project on the potential for LNG fuel use by bulk carriers," said the company’s chief operating officer Mike Utsler.
From left to right: Chen Gang, Technical Manager from SDARI; Toshiaki Tanaka, Deputy Director General, Dry Bulk Business Unit at Mitsui OSK Lines; Steen Lund, Regional Manager South East Asia, India and Pacific at DNV GL–Maritime; Mike Utsler, COO at Woodside Energy; Abdes Karimi, Freight Operations Manager at BHP Billiton; David O'Brien, Freight Manager from Rio Tinto Marine, at the 'Green Corridor' signing ceremony.
The UN's International Maritime Organisation has set January 1 2020 as the date when a 0.5% global cap on sulphur will be introduced for marine fuels. This will oblige many ships to switch to ultra-low sulphur fuel oil or diesel, add scrubbers to their ships, or alternatively switch to LNG as a fuel.
The JIP has two main objectives – building and assessing the business case of LNG as fuel for Capesize bulkers operating in the trade between Australia-China, and developing an efficient LNG fuelled Capesize concept design – which will run concurrently.
SDARI is a ship design consultant under China State Shipbuilding Corporation (CSSC).
'Green Corridor' is not the first coalition formed to promote the use of marine LNG. Fourteen firms including Shell, Qatargas and Engie along with DNV-GL and US shipowner Tote were among the founder members of SEA\LNG in July 2016. Its membership has since grown to 21, including Total.
Mark Smedley