Shell and French carrier CMA CGM have signed agreements today which include a multi-year liquefied natural gas (LNG) supply agreement, which will supply LNG to CMA CGM’s 13,000 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 18,000 cu m LNG bunker vessel that will come into service in 2023.
Tahir Faruqui, head of downstream LNG at Shell, said: “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.”
The two companies have also 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 as well as the delivery of innovative technical solutions, which include LNG and hydrogen blending, methane slip abatement technologies and fuel cell technology development.
Shell and CMA CGM plan to extend their partnership to the road and aviation sectors in the future.