Push to create LNG fuelling hub

Building on the strength of the Pilbara ports as a global LNG production hub, the Government of Western Australia will offer a 50% discount in port dues to bulk vessels bunkering with LNG at the Pilbara Ports Authority’s ports of Ashburton, Dampier and Port Hedland. This is expected to save each vessel around AUS$20,000.

The discount comes into effect on 1 July and will remain in place for five years. If taken up, the discounts could be worth up to AUS$5.3m by 2025.

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.”

The Pilbara LNG Bunkering Hub could create up to 125 jobs, including skilled mariners and support administration.

Transitioning iron ore exports shipped from the Pilbara from heavy fuel oil vessels to LNG-fuelled vessels could reduce carbon emissions by up to 6m tonnes per annum.

To help kick-start the shift to LNG bunkering in the Pilbara, the Pilbara Ports Authority has executed Australia’s first ship-to-ship LNG bunkering services licenses to Woodside Energy at Port Hedland and Dampier.

The government is also driving opportunities in green hydrogen in the Pilbara through the WA Renewable Hydrogen Strategy, creating future opportunities for carbon-free fuel in the region.