Shell and CMA CGM sign agreements on LNG and decarbonization

Written by Nick Blenkey
Group that signed LNG bunkering agreement

L to R: Farid Trad, vice president of bunkering & energy transition at CMA CGM; Carlos Maurer, executive vice president, sectors & decarbonization at Shell; Christine Cabau Woehrel, executive vice president assets group & operations at CMA CGM; Sarah Rollings, strategic account manager at Shell; Karine Desrues, vice president of research & development assets at CMA CGM; Melissa Williams, vice president marine, sectors & decarbonization at Shell .

A new multi-year liquefied natural gas (LNG) supply agreement between Shell and the CMA CGM Group will see CMA CGM’s 13,000 TEU containerships bunkered in the Port of Singapore. This will be done by the FueLNG joint venture between a Shell unit in Singapore and Keppel O&M, starting from the second half of 2023.

The simultaneous operation (SIMOPS) LNG bunkering will utilize the bunkering vessel FueLNG Bellina that is already in operation and an 18,000 cubic meter vessel that will come into service in 2023.

“CMA CGM continues to see the potential in LNG as a marine fuel, so it is a hugely positive step to be extending our supply commitments in this area,” said Tahir Faruqui, general manager, head of downstream LNG at Shell. “By using LNG as a marine fuel, the industry immediately places itself on a decarbonizing pathway, starting today. LNG is a fuel in transition and offers a credible pathway to liquefied biomethane and the hydrogen-based fuel liquefied e-methane; both having the potential of being net zero.”

MOU LOOKS AT FUTURE FUELS AND MORE

In addition to the LNG bunkering agreement, the two companies have signed a Memorandum of Understanding (MoU) that encompasses:

  • the advancement of low-carbon marine fuels, such as liquid biofuels, bio/e-methane (to LNG), bio/e-methanol, for new and existing vessels;
  • the delivery of innovative technical solutions, which include LNG and hydrogen blending, methane slip abatement technologies and fuel cell technology development;
  • exploring voluntary and mandated trading mechanisms for carbon credits; and
  • joint advocacy for net zero-emissions policies.

“Collaboration and partnership are critical in paving the way, which will include a mosaic of lower-carbon fuels, technology sharing and partnership projects to realize a net zero future in shipping,” said Melissa Williams, vice president marine, sectors and decarbonization at Shell. “Thus, I am excited about our agreement with CMA CGM as it allows both businesses to bring their respective scale and size to drive impactful change in the industry—helping our customers to overcome their challenges and meet their ambitious decarbonization goals in the process.”

Shell and CMA CGM are long standing partners and plan to extend their partnership to the road and aviation sectors in the future.

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