Shell and CMA CGM have signed agreements to work together to accelerate decarbonising the marine sector.
The agreement includes a multi-year LNG supply agreement, which will supply LNG to CMA CGM’s 13,000 twenty-foot equivalent unit (TEU) vessels in the Port of Singapore, starting from the second half of 2023.
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 18,000m3 LNG bunker vessel that will come into service in 2023, further enhancing the reliability of its LNG bunkering operations.
Tahir Faruqui, General Manager, Head of Downstream LNG at Shell, said:
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. By using LNG as a marine fuel, the industry immediately places itself on a decarbonising pathway, starting today
Furthermore, the two companies have signed a Memorandum of Understanding (MoU) that encompasses:
- The advancement of low-carbon marine fuels, such as liquid biofuels, bio/e-methane (to LNG), bio/e-methanol, for new and existing vessels
- The delivery of innovative technical solutions, which include LNG and hydrogen blending, methane slip abatement technologies and fuel cell technology development
- Exploring voluntary and mandated trading mechanisms for carbon credits
- Joint advocacy for net zero-emissions policies.
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, concluded.
