---

CMA CGM and Engie announced on Wednesday the signing of a memorandum of understanding (MoU) to promote LNG as the marine fuel for tomorrow's container vessels.

Farid Salem, Executive Officer of the CMA CGM Group, and Isabelle Kocher, CEO of Engie, signed the agreement at the Marseille headquarters of CMA CGM.

The agreement focuses on:

- A joint CMA CGM and ENGIE technical and economic study on LNG as a fuel for tomorrow's container ships;

- Research into the development of engineering specifications for a bunkering vessel adapted to LNG-powered container ships, so as to improve over time the logistics chain necessary to fuelling this type of vessels, thus promoting their deployment.

The agreement rounds out the research program undertaken since 2011 by CMA CGM to design ever more environment-friendly, large-capacity container ships. In that regard, CMA CGM currently participates in two programmes:

The first project centres on the development of a dual-fuel, large-capacity container ship with a propulsion system that enables the use of LNG or fuel oil only. Launched in 2011 by CMA CGM through its subsidiary CMA Ships, in partnership with the Korean shipbuilder DSME, the design of this vessel was approved by Bureau Veritas.

The second project focuses on the design of an ultra-large container ship powered by a combined gas and steam (COGAS) turbine system. The 'PERFECt' project was launched in 2015 in partnership with DNV GL, GTT, ABB, Caterpillar, and OMT.

Commenting on the latest agreement, Isabelle Kocher, CEO of Engie, remarked: "We are most pleased with this cooperation with CMA CGM, which is a leader of maritime transport at the international level. For Engie, natural gas is a key element in the energy transition. The group is actively engaged in the development of the diverse uses of retail LNG, especially for transportation. Ultimately, LNG as marine fuel will lead to a massive reduction in pollutant emissions."

Farid Salem, Executive Officer of the CMA CGM Group, said: "Liquefied natural gas has many environmental advantages. It is undoubtedly the fuel of the future of the maritime shipping industry that will progressively substitute heavy fuel oil over the next few decades. CMA CGM wishes to be a pioneer in this area. And with the agreement with Engie this allows the company to move one step closer."

Engie is a leading French LNG player with regasification terminals around the world. Last month, the company launched Gas4Sea, a new LNG bunkering business, with partners Mitsubishi Corporation and NYK Line. It follows an earlier agreement between the three companies to develop LNG bunkering in 2014.

The new LNG bunker firm is expected to carry out its first delivery in early 2017 using a purpose-built LNG bunkering vessel with a 5,000-cubic-metre capacity. The vessel will be used to carry out ship-to-ship LNG fuel deliveries in the Belgian port of Zeebrugge as well as other nearby locations.

In a statement on 7th September, the project partners explained how they would combine "NYK's shipping expertise with Engie and Mitsubishi Corporation's LNG supply portfolio and terminal access under the brand Gas4Sea".

Wednesday's announcement comes around a month after Yves Ledoux, CGT central coordinator at Engie, told Reuters that the company's management was mulling over the future of its LNG business, and that the union expected a reorganization and possibly a sale. France's L'Expansion also reported that Engie planned to reduce its workforce by around 1,150 people.

For the first six months of this year, Engie's Global Energy Management and LNG division posted a loss before interest, tax, depreciation and amortization of 39 million euros, whilst turnover declined by 47 percent as the company's performance was hit by lower oil and gas prices and decreasing gas sales volumes.

Engie is listed on Paris's stock exchange. Shares on Tuesday were valued at EUR 13.34 with a 52-week range of EUR 12.34 - 16.83.