Australia’s Port HEDLAND is to be the site for a new project to develop LNG marine fuel production and bunkering. The project is a part of efforts to build a global LNG bunkering and supply chain as an increasing number of shipowners turn to LNG.
Pilbara Clean Fuels (PCF) based out of Perth, Australia announced that it entered into a Memorandum of Understanding (MoU) with Oceania Marine Energy to develop and operate LNG bunkering and fuelling businesses at major ports in Northwest Australia.
PCF is pursuing the development of an electrified LNG plant in Port HEDLAND. The facility will convert pipeline natural gas to marine-grade LNG. The power supply for this plant will be procured from predominantly renewable sources. This would lead to lower lifecycle carbon emissions, which would be attractive to companies in the future.
A DNV analysis of “shipbuilding and alternative fuels” reported that LNG dual fuel vessels continue to be the most ordered vessels, but most of these ships are currently unable to operate on LNG due to the shortcomings in global supply and port infrastructure relating to LNG.
Port HEDLAND is the world’s largest iron ore export port. The companies PCF and Oceania believe that there will be strong demand for LNG from the ore ships calling Port HEDLAND. The plant’s base capacity, in the beginning, will be 0.5 mpta. However, PCF has stated that their market analysis of Port Headland indicates that there is a potential demand for 1 mpta by 2030.
A target date to begin operations has not been announced so far.
The opinions expressed herein are the author’s and not necessarily those of News2Sea.
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