Global Oil & Gas: Total to supply LNG fuel for CMA CGM’s newbuilds

Illustration purposes only (Image courtesy of CMA CGM)

French oil and gas major Total, signed an LNG supply deal with the compatriot shipper CMA CGM to fuel the latter’s nine containership newbuilds. 

Under the agreement, Total will supply around 300,000 tons of liquefied natural gas a year for 10 years, starting in 2020 when CMA CGM’s vessels will start to be delivered, Total said on Monday.

CMA CGM, the first shipping company in the world to equip its 22,000 TEU containerships with LNG propulsion, has selected Total Marine Fuels Global Solutions, a Total unit responsible for marketing marine fuels worldwide, for these future supply operations.

In February 2017, CMA CGM and Total already 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.

Under this agreement, Total will provide a tailor-made solution for LNG supply. The company is currently considering chartering on a long-term basis an 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, Total said on Monday.

In addition, both companies reached an agreement in principle on the potential supply of lubricants for the nine newbuilds, giving CMA CGM access to Total Lubmarine’s innovative products, technical expertise and global distribution network.

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