Integrated oil and gas company Total has signed a ten-year liquefied natural gas (LNG) supply agreement with French container transportation and shipping company CMA CGM.
As part of the deal, Total’s affiliate Total Marine Fuels Global Solutions will supply around 300,000 tonnes of LNG per year for a period of ten years, starting in 2020.
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The agreement is expected to fuel CMA CGM’s nine newbuild container ships, which are scheduled for delivery from 2020.
The latest development follows the companies signing a cooperation agreement in February this year to explore sustainable propulsion solutions in order to comply with the International Maritime Organisation’s (IMO) 2020 implementation date for new sulphur regulations.
CMA CGM Group chairman and CEO Rodolphe Saadé said: “With this groundbreaking decision by the CMA CGM Group, the entire maritime industry will benefit from the new supply chains that will be created.
“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 favour of the energy transition.”
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By GlobalDataThe adoption of LNG as a fuel is part of the company’s resolve to meet the new regulatory and environmental requirements formulated by the shipping industry, in addition to align with the Paris Agreement.
Additionally, the group is contemplating the idea of chartering a LNG bunkering vessel on a long-term basis to not only deliver fuel to CMA CGM in Europe, but also to other customers in the region.
The company expects that the creation of new supply chains would lead to a wider use of LNG to achieve environmental goals.
Having already cut its carbon emissions per container transported per kilometre by half between 2005 and 2015, CMA CGM is now planning to achieve a further 30% reduction by 2025.
Total chairman and CEO Patrick Pouyanné said: “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.”
