By Ejekwu Chidiebere
- For the first time, a shipping line will collaborate with an energy provider to co-develop and jointly operate LNG bunkering facilities
- TotalEnergies-CMA CGM JV will offer a complete logistics service in the Amsterdam-Rotterdam-Antwerp (ARA) region
- A 20,000 m³ LNG bunker vessel will be jointly deployed and operated by 2028
- TotalEnergies will supply CMA CGM up to 360,000 tons of LNG per year until 2040 under the new long-term agreement
TotalEnergies and CMA CGM Group, a global player in sea, land, air and logistics solutions said they have entered into an agreement to develop a 50/50 logistics joint venture dedicated to the implementation and operation of a liquefied natural gas (LNG) bunker supply solution at the port of Rotterdam in the Netherlands. The strategic partnership according to the French major reflects the shared ambition of both French companies to work jointly towards the acceleration of the energy transition in the maritime sector.
A new 20,000 cubic-meter LNG bunker vessel which is part of this new logistics joint venture according to Total Energies would be positioned in Rotterdam by the end of 2028. The JV the Company also said would offer a complete logistics service, from reload access at Gate terminal facilities to LNG bunker delivery to a wide range of vessels operating in the Amsterdam-Rotterdam-Antwerp (ARA) region, including those of CMA CGM as well as other shipping operators.
The Company said the joint venture would be capitalizing on its logistics infrastructure already in place in the ARA region where it said 18,600 m³ LNG bunker vessel Gas Agility has been in operation since 2020.
By integrating the JV’s future LNG bunker vessel with Gas Agility, the partnership aims, the French major says, to create synergies that enhance delivery flexibility and boost operational efficiency across the region.
This will not only support CMA CGM’s long-term goal of reaching Net Zero Carbon by 2050 but will also ensure the supply of its dual-fuel LNG-powered fleet which is expected to grow to 123 vessels by 2029, TotalEnergies is also expected to supply CMA CGM with up to 360,000 tons of LNG annually, from 2028 onwards and until 2040.
“We are proud to further contribute, alongside a partner like CMA CGM, to the development of an LNG bunkering supply chain in one of Europe’s leading port hubs. LNG is today the most mature and immediately available solution to reduce the environmental footprint of maritime transport. This strategic partnership not only strengthens our position as a major player in LNG bunkering but also illustrates the shared commitment of two leading French companies to actively support the energy transition,” says Patrick Pouyanné, Chairman and CEO of TotalEnergies.
“With this joint venture, CMA CGM and TotalEnergies are taking a new step to support the energy transition in shipping. For the first time, a shipping company and an energy provider will jointly operate an LNG bunkering vessel, based in the port of Rotterdam. It is a concrete way to scale up alternative fuels and accelerate the decarbonization of global trade,” Rodolphe Saadé, Chairman and CEO of CMA CGM Group said.
Adding that the creation of the joint venture is still subject to applicable regulatory approvals
TotalEnergies and CMA CGM Energy Window International (Media) gathered have been long-standing partners committed to advancing low-carbon marine solutions:
- In 2010, they signed into action a 10-year agreement under which TotalEnergies would supply 300,000 tons of LNG annually to CMA CGM in Rotterdam
- In 2019, they also signed a 10-year agreement under which TotalEnergies supplies 250,000 tons of LNG annually to CMA CGM in Marseille Fos
- In 2020 was the first LNG bunkering of a large CMA CGM container vessel in Rotterdam, with 17,300 m³ of LNG delivered by TotalEnergies
- In 2021, first LNG bunkering of a CMA CGM container ship in France, in Dunkirk, with nearly 16,400 m³ of LNG supplied, and
- In 2022 was the first ship-to-containership LNG bunkering operation at the Port of Marseille Fos, with around 6,000 m³ of LNG delivered in Marseille Fos.
LNG’s role in shipping’s energy transition
Used as a marine fuel, LNG helps cut greenhouse gas emissions by up to 20% compared to conventional marine fuel and has the potential to reduce emissions significantly more if bio or synthetic (respectively -67% and -85% of GHG emissions). It also significantly improves air quality by reducing nitrogen oxides (NOx) emissions by up to 85%, and it almost completely eliminates (by 99%) sulfur oxides (SOx) and fine particles. As such, marine LNG is a sustainable, affordable and immediately available way of reducing emissions in the shipping sector. TotalEnergies has actively invested in LNG bunkering infrastructure, critical to supporting its shipping customers’ adoption of LNG as a marine fuel.