News / CMA CGM deal for Shell LNG to be extended to air and road units

Following a deal for Shell’s Singapore subsidiary to supply LNG fuel to CMA CGM, the pair plan to extend the arrangement to the French transport group’s road and aviation divisions.

Shell has signed a multi-year agreement with CMA CGM to supply LNG for the line’s 13,000 teu vessels from the second half of next year.

Yesterday the two companies said: “As Shell and CMA CGM are long-standing partners, both companies plan to extend their partnership to the road and aviation sectors. This demonstrates the vital role effective partnerships will play in accelerating decarbonisation in shipping and beyond.”

The LNG bunkering will be handled by Shell Singapore and Keppel Offshore & Marine, using a barge already in operation, with a second 18,000 cu metre vessel expected to enter service next year.

Tahir Faruqui, 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. 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.”

In an effort to realise the potential of LNG, Shell and CMA CGM said they would seek to:

– advance the production of low-carbon marine fuels, such as liquid biofuels, bio/e-methane (to LNG), bio/e-methanol, for new and existing vessels;

– deliver innovative technical solutions, which include LNG and hydrogen blending, methane slip abatement technologies and fuel cell technology development;

– explore voluntary and mandated trading mechanisms for carbon credits; and

– develop joint advocacy policies for net zero-emissions.

Earlier this month, the carrier announced orders for new 15,000 teu and 7,000 teu vessels, both LNG-powered and methanol-ready.

CMA CGM’s LNG-powered fleet in service now stands at 29 vessels, which will expand  to 77 by 2026.