Oil and Gas News

Pilbara shapes as international LNG fuelling hub

The Western Australian Government is leading a push to establish an LNG fuelling hub for bulk vessels in the Pilbara, building on the state’s strength in the industry.

The proposed Pilbara LNG Bunkering Hub would create 125 jobs and help reduce carbon emissions by up to six million tonnes per annum through LNG fuelled vessels.

International Maritime Organisation regulations require trading vessels to reduce their greenhouse gas emissions, and the international shipping industry is turning to LNG as a transition fuel as it works towards clean hydrogen and other carbon-free fuels.

As part of the push for the LNG production hub, Premier Mark McGowan said he would offer a 50 per cent discount in port dues to bulk vessels bunkering with LNG at Pilbara ports – saving each vessel around $20,000.

The discount is set to come into effect in July and will remain in place for five years, with discounts totalling to $5.3 million by 2025.

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