TOTAL to supply CMA CGM with (a lot of) LNG for box ship newbuilds

Each ship's 18,000 cu.m LNG fuel tanks will be in vessel's fore part

DECEMBER 4, 2017 — 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. This massive volume of gas, which sets a new record for an LNG bunkering agreement, will fuel CMA CGM’s nine newbuild 22,000 TEU containerships, scheduled for delivery from Chinese shipyards beginning 2020 onwards.

CMA CGM, announced the decision to fuel the giant ships with LNG at last month’s opening of the 2017 UN Climate Change Conference (COP 23).

CMA CGM has selected Total Marine Fuels Global Solutions, the Total affiliate responsible for marketing marine fuels worldwide, for these future supply operations. This follows a cooperation agreement between CMA CGM and Total, signed in February 2017, to examine the most environmentally responsible propulsion solutions to meet IMO’s 2020 implementation date for new sulfur regulations.

By selecting LNG as a fuel today, CMA CGM is opting for a solution that will outperform the sulfur cap of 0.5% required in 2020.

“LNG is the fuel of the future for shipping,” said Rodolphe Saadé, Chairman and Chief Executive Officer of CMA CGM. “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.”

“CMA CGM’s decision to adopt LNG propulsion for its new build container ships sends a strong signal to the maritime world.” stated Patrick Pouyanné, Chairman and Chief Executive Officer 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.”

Under this agreement, Total will provide a tailor-made solution for LNG supply. It is currently considering chartering on long-term basis a LNG bunkering vessel that would not only deliver fuel to CMA CGM in Europe, but also to other customers in the same region. The new supply chains created would lead to a wider use of LNG, especially in other shipping sectors, to achieve even greater and ambitious environmental responsibility.

In addition, both companies reached an agreement in principle on the potential supply of lubricants for the nine newbuilds