TotalEnergies and CMA CGM Form Joint Venture for LNG Bunkering

TotalEnergies and CMA CGM Group have announced a joint venture to provide liquefied natural gas (LNG) bunkering supply services at the port of Rotterdam. This collaboration aims to replace traditional fuel oil volumes with LNG, marking a significant step in the maritime sector’s energy transition. The agreement, officially revealed on March 15, 2024, establishes a 50/50 partnership that is the first of its kind between an energy supplier and a shipping company for jointly operating LNG bunkering facilities.

TotalEnergies emphasized that this strategic partnership aligns with the companies’ shared goal of accelerating the energy transition in shipping. As part of the initiative, a new 20,000 cubic-meter LNG bunker vessel will be introduced in Rotterdam by the end of 2028. This vessel will be jointly operated and will offer comprehensive logistics services, including reload access at Gate terminal facilities and LNG delivery to various vessels in the Amsterdam-Rotterdam-Antwerp (ARA) region.

TotalEnergies has a robust logistics presence in the ARA area, with its LNG bunker vessel, Gas Agility, having been operational since 2020. The new joint venture will also allow CMA CGM to secure a long-term supply of LNG, with TotalEnergies committed to providing up to 360,000 tons of LNG annually from 2028 until 2040.

In a statement, Patrick Pouyanné, Chairman and CEO of TotalEnergies, highlighted the environmental benefits of LNG, stating, “LNG is today the most mature and immediately available solution to reduce the environmental footprint of maritime transport.” He noted that using LNG as a marine fuel can reduce greenhouse gas emissions in the shipping sector by approximately 20% compared to fuel oil.

Rodolphe Saadé, Chairman and CEO of CMA CGM Group, expressed that this agreement represents a significant advancement in the adoption of alternative fuels. He stated, “This is a concrete way to scale up alternative fuels and accelerate the decarbonization of global trade.”

The establishment of this joint venture signifies a noteworthy collaboration in the maritime industry aimed at enhancing sustainability and reducing emissions. As shipping companies face increasing pressure to adopt greener practices, initiatives like this one are expected to play a critical role in the industry’s ongoing environmental transformation.