CMA CGM inks tailor-made LNG supply agreement with Total for 10 years
December 4, 2017: In a groundbreaking marine fuel deal, French container transportation and shipping company CMA CGM has signed a tailor-made agreement with Total Marine Fuels Global Solutions to supply of approximately 3 lakh tonnes of LNG every year for a period of 10 years, starting 2020.
According to reports, it’s an unprecedented volume in the history of LNG bunker that will fuel CMA CGM's nine new build container ships.
CMA CGM is the first global company to equip its giant container ships having capacity of 22,000 TEUs each with LNG propulsion. For this, it selected Total to supply LNG to CMA CGM's newly built container ships.
In February 2017, CMA CGM and Total had 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 has opted for a solution that will outperform the sulfur cap of 0.5 percent required in 2020.
“LNG is the fuel of the future for shipping,” said Rodolphe Saadé, chairman and CEO of CMA CGM.
“With this landmark decision taken by the CMA CGM group, the entire maritime industry will benefit from the new supply chains which 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, we are consolidating France’s prominent role for a more sustainable transportation and in favor of the energy transition,” said Saadé.
“CMA CGM’s decision to adopt LNG propulsion for its new build container ships sends a strong signal to the maritime world,” said Patrick Pouyanné, chairman and CEO 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,” said Pouyanné.
Additionally, both companies also reached an agreement on the supply of lubricants for the nine new builds, thereby offering CMA CGM access to Total Lubmarine’s innovative products, technical expertise and global distribution network.