Western Australia pushes for Pilbara LNG fuelling hub

The Western Australian government is pushing forward plans to create an international liquefied natural gas (LNG) fuelling hub in Pilbara as part of a move to reduce carbon emissions.

The state government claims transition to LNG fuelled vessels in Pilbara ports could reduce emissions by up to six million tonnes per annum (Mtpa).

As part of the plan, the Government of Western Australia is introducing new incentives encouraging ships visiting Pilbara Ports to use cleaner marine fuels, such as LNG.

The government will offer a 50% discount in port dues to bulk vessels bunkering with LNG at Pilbara ports.

Western Australia Premier Mark McGowan said: “The Pilbara is already globally renowned as an LNG production powerhouse, and my government is taking steps to turn the Pilbara into an international LNG fuelling hub.

“A Pilbara LNG Bunkering Hub could create more than 100 long-term jobs in the Pilbara, while supporting global efforts to reduce carbon emissions from the shipping industry.”

According to a statement by the WA government, the move will save each vessel around $20,000.

The Pilbara LNG Bunkering Hub is expected to create up to 125 jobs within the region.

Western Australia Ports Minister Alannah MacTiernan said: “Major resources companies have already tendered for LNG-fuelled bulk vessels to carry iron ore from the Pilbara, and are beginning negotiations about where to bunker those ships.

“Importantly, a Pilbara LNG Bunkering Hub provides the platform for Western Australia to become the region’s major renewable hydrogen producer and fuelling stop, driving down carbon emissions from shipping and creating a whole new industry for the Pilbara.”

In March this year, the Australian Government committed to provide A$40m (24.7m) in financing to the Future Energy Exports (FEnEx) Cooperative Research Centre (CRC) in Western Australia.

In November 2018, the Western Australian Government lifted the existing moratorium regarding fracking on existing onshore petroleum titles following an independent scientific inquiry.

In March of the same year, WA announced plans to increase employment in the liquefied natural gas (LNG) sector.