French shipping giant, CMA CGM Group and oil and gas company, Shell have entered into agreements to work together towards accelerating the decarbonisation of the marine sector.
Specifically, the partners have signed a multi-year deal for the supply of Liquefied Natural Gas (LNG) to CMA CGM’s 13,000 TEU vessels in the Port of Singapore, starting from the second half of 2023.
Under the arrangement, the simultaneous operation (SIMOPS) LNG bunkering will be undertaken by FueLNG, a joint venture between a unit of Shell in Singapore and Keppel Offshore & Marine Ltd (Keppel O&M) utilising FueLNG Bellina that is already in operation and an 18,000 cbm LNG bunker vessel that will come into service in 2023.
“CMA CGM continues to see the potential in LNG as a marine fuel, so it is a … positive step to be extending our supply commitments in this area. 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”, said Tahir Faruqui, General Manager, Head of Downstream LNG at Shell.
World Maritime News report that this agreement comes shortly after the French carrier and Maritime and Port Authority of Singapore (MPA) signed a memorandum of understanding (MoU) to collaborate on the development of capabilities and solutions across maritime decarbonisation, digitalisation and innovation.