Total Signs Big LNG Bunker Deal to CGA CGM

Total has signed the biggest LNG bunker supply deal to a single shipowner to date.

It announced December 4 it has contracted to supply around 300,000 tons of LNG annually for ten years starting 2020 to French shipowner CMA CGM. This follows from Total’s February agreement to partner the shipowner as its fuel provider, and CMA CGM’s order for nine giant newbuild LNG-fuelled containerships placed in China in September.

“This unprecedented volume in the history of LNG bunker will fuel CMA CGM's nine newbuild container ships, scheduled for delivery beginning 2020 onwards,” said Total: “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." Each of the containerships will be able to transport 22,000 TEUs, where TEU stands for 'twenty-foot equivalent unit', an industry measurement of cargo capacity.

“CMA CGM’s decision to adopt LNG propulsion for its new build container ships sends a strong signal to the maritime world,” said Total CEO Patrick Pouyanne adding: “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.”

“LNG is the fuel of the future for shipping,” said Rodolphe Saade, CEO of Marseille-based CMA CGM. “With this groundbreaking decision…the entire maritime industry will benefit from the new supply chains that will be created.” The firm said it had already reduced its carbon emissions per container transported per km by 50% between 2005 and 2015, and has now introduced a plan to reduce them by a further 30% by 2025.