CMA CGM taps Total for LNG fuel supply

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Total will supply LNG fuel for CMA CGM’s new mega-vessel fleet.

   CMA CGM has inked an agreement with energy company Total for the supply of 300,000 tons of liquefied natural gas (LNG) a year for 10 years to fuel CMA CGM’s nine 22,000-TEU newbuild container ships.
   Under this agreement, which will start in 2020, Total will provide a tailor-made solution for LNG supply. As a result, CMA CGM is currently considering chartering a LNG bunkering vessel on long-term basis to deliver fuel to CMA CGM in Europe as well as to other customers in the same region, the ocean carrier said. 
   “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 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.”
   In February 2017, CMA CGM and Total signed a cooperation agreement to meet the International Maritime Organization’s (IMO) 2020 implementation date for new sulfur regulations. By using LNG as a fuel, CMA CGM is opting for a solution that will outperform the sulfur cap of 0.5 percent required in 2020, the carrier said.
   “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.”
   Back in August, Total agreed to a $7.45 billion purchase of Maersk Oil, a move analysts said would be mutually beneficial, as it would allow Maersk to focus on its core transportation businesses, while still giving the Danish conglomerate a financial stake in the oil and gas industry.


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