November 18, 2020 - BY Admin

Anglo American - LNG

Anglo American announced the award of a 10-year charter contract for four LNG-powered capesize+ vessels, introducing natural gas into its chartered fleet for the first time. Designed to be larger than, but remain as flexible as, a conventional capesize vessel, the new builds will optimize cargo transport by increasing load and improving overall cost effectiveness. U-Ming Marine Transport will own the newly designed 190,000-deadweight ton LNG-fueled bulk carriers. The fleet will be built by Shanghai Waigaoqiao Shipbuilding in China and is expected to be delivered in 2023.

“Anglo American is committed to reducing emissions from its ocean freight operations and to playing a leading role in shaping a more sustainable future for the maritime industry. Today’s agreement is aligned with our goal to be carbon neutral across our operations by 2040 – as we work to reduce emissions not only at our production sites but also along our entire value chain – and builds on our track record of implementing concrete actions to deliver on the targets set by the International Maritime Organization’s 2018 strategy,” said Peter Whitcutt, CEO of Anglo American’s Marketing business

“LNG is a readily available, commercially viable, lower emission solution which, combined with innovative technology designed to eliminate unburnt methane, will allow these new builds to provide a much improved environmental and more efficient performance,” he added.

The fleet is expected to carry up to five million tons of product per annum, transporting iron ore from Anglo American’s operations in Brazil and South Africa to the company’s global customer base. The new builds will be flagged and registered in Singapore, which will also serve as prime LNG bunkering port, thereby avoiding deviations from trading routes for refueling purposes.

Earlier in October 2020, Anglo American was among the founding signatories of the Sea Cargo Charter – created by some of the world’s largest energy, agriculture, mining, and commodity trading companies, with the aim of establishing a standard methodology and reporting framework to allow charterers to measure and align their emissions from ocean transportation activities. In 2019, the company also joined the Getting to Zero Coalition, an alliance committed to getting commercially viable deep sea zero emission vessels powered by zero emission fuels into operation by 2030.