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Wednesday, 06 December 2017

Strategic Agreement between Total and CMA CGM on Liquefied Natural Gas Fuel Supply for CMA CGM New Build Container Ships

Total and CMA CGM have signed an agreement covering the supply of around 300,000 tons of liquefied natural gas (LNG) a year for 10 years starting in 2020. This unprecedented volume in the history of LNG bunker will fuel CMA CGM's nine newbuild container ships, scheduled for delivery beginning 2020 onwards.

CMA CGM, the first shipping company in the world to equip its giant container ships (capacity of 22,000 TEUs [1] ) with LNG propulsion, has selected Total Marine Fuels Global Solutions, the Total affiliate responsible for marketing marine fuels worldwide, for these future supply operations. In February 2017, CMA CGM and Total already signed a cooperation agreement to examine the most environmentally responsible propulsion solutions to meet the International Maritime Organization's 2020 implementation date for new sulfur regulations.

By selecting LNG as a fuel today, CMA CGM is opting for a solution that will outperform the sulfur cap of 0.5% required in 2020.

'LNG is the fuel of the future for shipping,' commented Rodolphe Saadé, Chairman and Chief Executive Officer of CMA CGM. 'With this groundbreaking decision by the CMA CGM Group, the entire maritime industry will benefit from the new supply chains that will be created. CMA CGM is pursuing its expansion through a combination of growth, profitability and environmental responsibility. By combining the expertise of two French companies, each one leader in its field, we are consolidating France's prominent role for a more sustainable transportation and in favor of the energy transition.'

'CMA CGM's decision to adopt LNG propulsion for its new build container ships sends a strong signal to the maritime world.' stated Patrick Pouyanné, Chairman and Chief Executive Officer of Total. 'The wider use of LNG as a fuel is an important component of Total's LNG strategy, and we are delighted to support CMA CGM as it implements this ambitious project. This agreement highlights our involvement in developing dedicated supply chains for this new fuel. We are once again demonstrating our ability to provide customized energy solutions to our customers.'

Under this agreement, Total will provide a tailor-made solution for LNG supply. The Group is currently considering chartering on long-term basis a LNG bunkering vessel that would not only deliver fuel to CMA CGM in Europe, but also to other customers in the same region. The new supply chains created would lead to a wider use of LNG, especially in other shipping sectors, to achieve even greater and ambitious environmental responsibility.

Committed for many years to reducing its energy footprint to protect the environment, oceans and biodiversity, CMA CGM has already reduced its carbon emissions per container transported per kilometer by 50% between 2005 and 2015. It has now introduced a far-reaching plan for a further 30% reduction by 2025.

In addition, both companies reached an agreement in principle on the potential supply of lubricants for the nine newbuilds, giving CMA CGM access to Total Lubmarine's innovative products, technical expertise and global distribution network.

LNG fuel, a solution that meets the shipping industry's new regulatory and environmental requirements

CMA CGM's decision is fully aligned with the Paris Agreement and the talks currently under way at the international level. LNG offers a range of environmental advantages, including a 99% reduction in sulfur oxide (SOx) and fine particulate matter emissions. It also substantially reduces nitrogen oxide (NOx) emissions and significantly decreases carbon emissions. LNG will play a growing role in the energy mix of the shipping world.

[1] Twenty-foot Equivalent Unit: Unit used to measure a container ship's cargo carrying capacity.

December 5, 2017 by Hellenicshippingnews

 

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