Shell, CMA CGM partner for LNG pathway to decarbonisation

Thursday, 11 August 2022
Free Read

Energy firm Shell has signed a multi-year agreement with shipping line CMA CGM Group to provide LNG bunkering in Singapore and accelerate decarbonisation in global maritime supply chains.

The deal will see Shell supply LNG for CMA CGM’s containerships with capacity for 13,000 twenty-foot equivalent unit (TEU) and bunkering operations will commence from the second half of 2023.

Tahir Faruqui, General Manager, Head of Downstream LNG at Shell, commented: “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.”

SIMOPS bunkering 

Bunkering will be provided by FueLNG, a joint venture between Shell and Keppel Offshore & Marine, and will be carried out by the firm’s existing FueLNG Bellina vessel as well as a new 18,000-cubic-metre-capacity LNG bunker vessel due to come into service in 2023.

“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,” Faruqui added.

Both vessels will conduct simultaneous operation (SIMOPS) LNG bunkering.

Steel cutting ceremony

Construction of CMA CGM’s second 13,000-TEU dual-fuel boxship began in mid-July, with Chinese shipbuilder Hudong Zhonghua conducting a steel cutting ceremony at its Changxing Shipbuilding Base.

The new vessel will be 336 metres long and 51 metres wide and will be equipped with a 14,000-cubic-metre MARK III LNG cargo tank. It is part of a US$2.3 billion investment programme by CMA CGM in LNG-powered containerships.

The latest figures from Shell’s LNG Outlook report suggest that global trade in liquefied natural gas rebounded strongly last year, with volumes increase by six percent compared to 2020, reaching 380 million tonnes.

Low-carbon partnership

Alongside the LNG bunker agreement, the two firms have also signed a Memorandum of Understanding (MoU) to advance low-carbon marine fuels, such as liquid biofuels, bio/e-methane (to LNG), bio/e-methanol, for new and existing vessels.

“Collaboration and partnership are critical in paving the way, which will include a mosaic of lower-carbon fuels, technology sharing and partnership projects to realise a net zero future in shipping,” Melissa Williams, Vice President Marine, Sectors & Decarbonisation at Shell, said, “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 decarbonisation goals in the process.”

This partnership will involve delivery of innovative technical solutions, such as LNG and hydrogen blending, methane slip abatement technologies and fuel cell technology development. The firms will also explore new business models incorporating frameworks voluntary and mandated trading mechanisms for carbon credits. 

 

Related Video

Free Read