CMA CGM Inks LNG Supply Deal with Shell

Shell and CMA CGM Group have signed a multi-year liquefied natural gas (LNG) supply agreement, which will supply LNG to CMA CGM’s 13,000 twenty-foot equivalent unit (TEU) vessels in the Port of Singapore, starting from the second half of 2023.

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) utilizing FueLNG Bellina that is already in operation and an 18,000m3 LNG bunker vessel that will come into service in 2023, further enhancing the reliability of its LNG bunkering operations.  

Tahir Faruqui, General Manager, Head of Downstream LNG at Shell, said, “CMA CGM continues to see the potential in LNG as a marine fuel, so it is a hugely 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 decarbonizing 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.”

Furthermore, the two companies have signed a Memorandum of Understanding (MoU) that encompasses the advancement of low-carbon marine fuels, such as liquid biofuels, bio/e-methane (to LNG), bio/e-methanol, for new and existing vessels, as well as the delivery of innovative technical solutions, which include LNG and hydrogen blending, methane slip abatement technologies and fuel cell technology development.

The companies will also explore voluntary and mandated trading mechanisms for carbon credits, as well as joint advocacy for net zero-emissions policies.

Melissa Williams, Vice President Marine, Sectors & Decarbonization at Shell, said, “Collaboration and partnership are critical in paving the way, which will include a mosaic of lower-carbon fuels, technology sharing and partnership projects to realize a net zero future in shipping. Thus, I am excited about our agreement with CMA CGM as it allows both businesses to bring their respective scale and size to drive impactful change in the industry – helping our customers to overcome their challenges and meet their ambitious decarbonization goals in the process.”