CMA CGM and ENGIE sign MOU on LNG as box ship fuel

CMA CGM projects underway include one on using an LNG fueled combined gas and steam turbine system to power a large containership CMA CGM projects underway include one on using an LNG fueled combined gas and steam turbine system to power a large containership

OCTOBER 19, 2016 — Container shipping giant CMA CGM and energy company ENGIE (the former GDF Suez) have signing of a Memorandum of Understanding to promote LNG as the marine fuel for tomorrow's container vessels.

Under the MOU, a joint CMA CGM and ENGIE technical and economic study will focus on LNG as a containership fuel while another study will focus on the development of engineering specifications for a bunkering vessel adapted to LNG-fueled containerships, to improve over time the logistics chain necessary to fueling this type of vessel and thus promote their deployment. . Both parties believe that the use of LNG as a marine fuel is destined to expand in the near future and intend to be active players in this development.

This agreement rounds out the research program undertaken since 2011 by CMA CGM to design ever more environment-friendly large capacity containerships.

CMA CGM is already participating in two programs.

The first is on the development of a dual-fuel large capacity containership with a propulsion system offering the choice of using either liquefied natural gas or fuel oil only. Launched in 2011 by CMA CGM, through its subsidiary CMA Ships, in partnership with the Korean shipbuilder DSME, the design of this vessel has been approved by Bureau Veritas.

The second project is aimed at designing a large capacity containership powered by a combined gas and steam turbine system to power this ultra large container ship. It was launched in 2015 in partnership with DNV GL, GTT, ABB, Caterpillar, and OMT.

Farid Salem, Executive Officer of the CMA CGM Group, said today, "Liquefied natural gas has many environmental advantages. It is undoubtedly the fuel of the future of the maritime shipping industry that will progressively substitute heavy fuel oil over the next few decades. CMA CGM wishes to be a pioneer in this area. And with the agreement with ENGIE this allows the company to move one step closer."

Isabelle Kocher, CEO of ENGIE, said, "We are most pleased with this cooperation with CMA CGM, which is a leader of maritime transport at the international level. For ENGIE, natural gas is a key element in the energy transition. The Group is actively engaged in the development of the diverse uses of retail LNG, especially for transportation. Ultimately, LNG as marine fuel will lead to a massive reduction in pollutant emissions,"

ENGIE manages a large LNG supply portfolio and has a significant presence in regasification terminals in Europe and worldwide. In 2014, the Group initiated a partnership on LNG marine fuel development with Mitsubishi Corporation and NYK and ordered the first purpose-built LNG bunkering vessel in the market. Delivery from this vessel to the first customer is expected in early 2017 in Zeebrugge, Belgium. Last September the three groups launched a new joint brand, Gas4Sea, offering a clean, reliable, safe, and cost-effective ship-to-ship supply of LNG for the maritime sector.

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