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Total to supply CMA CGM with 3m tonnes of LNG bunkers over 10 years

Supply agreement covers LNG fuel and lubricants for nine giant newbuild boxships.

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Updated on 04 Dec 2017 12:01 GMT

Total and CMA CGM have signed an agreement covering the supply of approximately 300,000 tonnes of LNG a year for 10 years starting in 2020. Total's affiliate, Total Marine Fuels Global Solutions, will be responsible for performing the deliveries.

This unprecedented volume in the history of LNG bunkers will fuel CMA CGM's nine newbuild ultra-large container vessels (ULCVs), scheduled for delivery from 2020 onwards. The French shipping giant is the first in the world to equip its giant boxships with LNG propulsion.

In addition, both companies reached an agreement in principle on the potential supply of lubricants for the nine newbuilds, giving CMA CGM access to Total Lubmarine's products, technical expertise and global distribution network.

In February 2017, CMA CGM and Total already signed a cooperation agreement to examine the most eco-friendly propulsion solutions to meet the International Maritime Organization's (IMO) 2020 implementation date for new sulphur regulations.

By deciding to bunker its nine new boxships with LNG, CMA CGM has opted for a solution that will exceed the requirements of the upcoming global sulphur cap of 0.5 percent.

"LNG is the fuel of the future for shipping," commented Rodolphe Saade, chairman and CEO of CMA CGM. "With this groundbreaking decision by the CMA CGM Group, the entire maritime industry will benefit from the new supply chains that will be created. CMA CGM is pursuing its expansion through a combination of growth, profitability and environmental responsibility. By combining the expertise of two French companies, each one leader in its field, we are consolidating France's prominent role for a more sustainable transportation and in favour of the energy transition."

"CMA CGM's decision to adopt LNG propulsion for its new build container ships sends a strong signal to the maritime world," remarked Patrick Pouyanne, chairman and CEO of Total. "The wider use of LNG as a fuel is an important component of Total's LNG strategy, and we are delighted to support CMA CGM as it implements this ambitious project. This agreement highlights our involvement in developing dedicated supply chains for this new fuel. We are once again demonstrating our ability to provide customized energy solutions to our customers."

Total said it is also considering chartering on a long-term basis an LNG bunkering vessel that would not only deliver fuel to CMA CGM in Europe, but also to other customers in the region.

Between 2005 and 2015, CMA CGM says it reduced its CO2 emissions per container transported per kilometre by 50 percent and has a plan in place to reduce its CO2 emissions by a further 30 percent between 2015 and 2025.

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