Decarbonization Agreement between Shell and CMA CGM



Shell and CMA CGM Group will be working closely as they have signed certain agreements says LNG Industry.

The two companies have signed a Memorandum of Understanding (MoU) that encompasses the following:

  • The advancement of low-carbon marine fuels, such as liquid biofuels, for new and existing vehicles.
  • 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.
  • Advocacy for net zero-emissions policies.

 The main aspect of these agreements is accelerating decarbonization in the marine sector. This includes a multi-year LNG supply agreement, which will supply LNG to CMA CGM’s 13 000 20-ft equivalent unit (TEU) vessels in the Port of Singapore, starting from 2H23.

A Joint Venture

FueLNG will be taking up the simultaneous operation(SIMOPS). Moreover, This is a joint venture between a unit of Shell in Singapore and Keppel Offshore & Marine Ltd. Under this, they will be utilising  FueLNG Bellina and an 18 000m3 LNG bunker vessel that will come into service in 2023. Further, they will be able to enhance the reliability of its LNG.

Potential use of LNG

 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. 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.”

A Net-Zero future

Melissa Williams, Vice President Marine, Sectors & Decarbonisation at Shell, said: “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. Thus, I am excited about our agreement with CMA CGM as it allows both businesses to bring their respective scale and size to drive impactful change in the industry – helping our customers to overcome their challenges and meet their ambitious decarbonisation goals in the process.”

Future Plans

Since Shell and CMA CGM are long-standing partners, both companies have planned to extend their partnership to the road and aviation as well. In doing so, this demonstrates the vital role their effective partnerships will play in accelerating decarbonisation in shipping and beyond.

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Source: LNG Industry


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