CMA CGM and ENGIE Sign MoU to Promote Adoption of LNG Bunkers

Wednesday October 19, 2016

CMA CGM S.A. (CMA CGM) Wednesday announced that it has signed a Memorandum of Understanding (MoU) with ENGIE to promote liquefied natural gas (LNG) as bunkers for container vessels.

The agreement is said to support the two groups' position that LNG as a marine fuel will expand in the near future, as well as their intention to be active players in the fuel's adoption and development.

"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," said Isabelle Kocher, CEO of ENGIE.

"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."

The agreement will see CMA CGM and ENGIE work together on technical and economic study on LNG as a fuel for container ships.

The two companies will also study the development of engineering specifications for a bunkering vessel adapted to LNG-fuelled container ships, which will be aimed at improving the logistics chain for the fueling this type of vessel in order to promote their deployment.

"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," said Farid Salem, Executive Officer of the CMA CGM Group.

"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."

The MoU is said to be the latest development in a process undertaken by CMA CGM in 2011 to develop more environmentally friendly vessels, including a LNG-powered container ship.