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.
The unprecedented volume in the history of LNG bunker will fuel CMA CGM's nine 22,000 TEU newbuild containerships and be supplied by Total Marine Fuels Global Solutions — the Total affiliate responsible for marketing marine fuels worldwide.
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 fuel, a solution that meets the shipping industry’s new regulatory and environmental requirements, CMA CGM is opting for a solution that will outperform the sulfur cap of 0.5% required in 2020.
CMA CGM’s decision aligns with the Paris Agreement and the talks currently underway 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.
Rodolphe Saadé, Chairman and Chief Executive Officer of CMA CGM, said: “LNG is the fuel of the future for shipping.
“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.”
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Under this agreement, Total will provide a tailor-made solution for LNG supply.
The Group is currently considering chartering an LNG bunkering vessel that would not only deliver fuel to CMA CGM in Europe, but also to other customers in the same region.
This would create new supply chains that 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 kilometre 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.
Patrick Pouyanné, Chairman and Chief Executive Officer of Total, said: “CMA CGM’s decision to adopt LNG propulsion for its new build container ships sends a strong signal to the maritime world.
“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.”