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Total and CMA CGM ink LNG supply agreement

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Hydrocarbon Engineering,

Total has announced that it has signed an agreement with CMA CGM covering the supply of approximately 300 000 tpy of LNG for 10 years starting in 2020.

The LNG will fuel CMA CGM's nine newbuild container ships, scheduled for delivery beginning 2020 onwards.

CMA CGM has selected Total Marine Fuels Global Solutions, the Total affiliate 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 (IMO) 2020 implementation date for new sulfur regulations.

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

Patrick Pouyanné, Chairman and Chief Executive Officer of Total, added: “CMA CGM’s decision to adopt LNG propulsion for its new build container ships sends a strong signal to the maritime world […] 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 customised energy solutions to our customers.”

Under the agreement, Total will provide a tailor-made solution for LNG supply. The Group is currently considering chartering an LNG bunkering vessel on long-term basis, which would deliver fuel to CMA CGM in Europe, as well as to other customers in the same region.

Both companies have also 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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