Photo: Illustration. Courtesy of CMA CGM

CMA CGM, Shell join forces for LNG supply, maritime decarbonisation

French shipping giant CMA CGM Group and oil and gas company Shell have entered into agreements to work together towards accelerating the decarbonisation of the marine sector.

Specifically, the partners have signed include a multi-year deal for the supply of liquefied natural gas (LNG) to CMA CGM’s 13,000 TEU vessels in the Port of Singapore, starting from the second half of 2023.

As disclosed, the simultaneous operation (SIMOPS) LNG bunkering will be undertaken by FueLNG, a joint venture between a unit of Shell in Singapore and Keppel Offshore & Marine Ltd (Keppel O&M) utilising FueLNG Bellina that is already in operation and an 18,000 cbm LNG bunker vessel that will come into service in 2023.

“CMA CGM continues to see the potential in LNG as a marine fuel, so it is a … positive step to be extending our supply commitments in this area. By using LNG as a marine fuel, the industry immediately places itself on a decarbonising pathway, starting today. LNG is a fuel in transition and offers a credible pathway to liquefied biomethane and the hydrogen-based fuel liquefied e-methane; both having the potential of being net-zero”, said Tahir Faruqui, General Manager, Head of Downstream LNG at Shell.

This agreement comes shortly after the French carrier and Maritime and Port Authority of Singapore (MPA) signed a memorandum of understanding (MoU) to collaborate on the development of capabilities and solutions across maritime decarbonisation, digitalisation and innovation.

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In addition to the LNG supply deal, CMA CGM and Shell have also signed an MoU that encompasses:

  • the advancement of low-carbon marine fuels, such as liquid biofuels, bio/e-methane (to LNG) and bio/e-methanol for new and existing vessels;
  • the delivery of innovative technical solutions, which include LNG and hydrogen blending, methane slip abatement technologies and fuel cell technology development;
  • exploring voluntary and mandated trading mechanisms for carbon credits; and
  • joint advocacy for net-zero emissions policies.

Being the long-standing partners, both companies plan to extend their partnership to the road and aviation sectors in the future. In doing so, this demonstrates the vital role effective partnerships will play in accelerating decarbonisation in shipping and beyond, Shell states.

In 2021, Shell and CMA CGM performed the first liquefied biomethane (BioLNG) bunkering trial in Rotterdam.

Shell’s BioLNG offering, combined with the dual-fuel gas engine technology developed by CMA CGM, has the potential to further reduce greenhouse gas emissions (including carbon dioxide) by at least 67% well-to-wake (the complete value chain) compared to VLSFO, the duo said at the time.

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