New partnership for LNG production and bunkering at Port of Hedland

Australian firm Pilbara Clean Fuels (PCF) will set up an LNG production plant at Port Hedland, with a production capacity of 500,000 mt/year.

PHOTO: Australia's port of Hedland. RINA

Port of Hedland in Western Australia is the world’s largest iron ore export hub.

The project envisages the conversion of pipeline natural gas to LNG. The facility will be used to supply LNG to dry-bulk iron ore carriers operating round-trip voyages between the Pilbara and Asia.   

As part of the project, Australian shipping company Oceania Marine Energy (Oceania) will develop an LNG marine bunkering service in Hedland and Norwegian firm Kanfer Shipping will provide "purpose-designed" LNG bunker vessels.

LNG bunkering will be conducted via ship-to-ship deliveries.

The project's market analysis for Port Hedland indicates a potential LNG bunker demand of 1 million mt/year by 2030, according to the project partners. 

Meanwhile, the classification society RINA will develop the concept for a new LNG marine fuel system on a 209,000-dwt ship design. This new fuel system will come with pre-combustion carbon removal and hydrogen production, RINA says. 

The collaboration of the three entities will provide a comprehensive approach to the project and will "maximise the emissions reduction effort," RINA's marine consulting executive vice president Massimo Volta said.

The project will supply LNG as a marine fuel “for the first time available on-route to the Australia - Asia iron ore shipping fleets,” Oceania’s managing director Nick Bentley said.

The Pilbara to Asia dry-bulk trade route is a part of the West Australia — East Asia Iron Ore Green Corridor. The project aims to contribute to this green corridor by providing bunkering infrastructure and LNG as a clean fuel at the Port of Hedland.

LNG can curb carbon dioxide emissions by about a quarter compared to conventional bunker fuels. However, its methane emissions can be 36 times more potent as a greenhouse gas (GHG) compared to carbon dioxide over a century, according to a World Bank study.

The effort comes as part of Port Hedland’s infrastructure push. Earlier this month, Yara Clean Ammonia (YCA) and Pilbara Ports Authority commissioned a study by Lloyd’s Register which found that the Pilbara region was also suitable for ammonia bunkering. 

By Manjula Nair

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