TotalEnergies SE and CMA CGM Group on Wednesday announced an agreement to form a 50-50 venture to supply liquefied natural gas (LNG) fuel at the Port of Rotterdam, the Netherlands.
The French companies “will offer a complete logistics service, from reload access at Gate terminal facilities to LNG bunker delivery to a wide range of vessels operating in the Amsterdam-Rotterdam-Antwerp (ARA) region, including those of CMA CGM as well as other shipping operators”, a joint statement said.
“The joint venture will capitalize on TotalEnergies’ established logistics infrastructure in the ARA region, where the 18,600-cubic-meter LNG bunker vessel Gas Agility has been in operation since 2020. By integrating the JV’s future LNG bunker vessel with Gas Agility, the partnership aims to create synergies that enhance delivery flexibility and boost operational efficiency across the region”.
The joint venture targets to deploy a new 20,000-cubic-meter (706,293.33 cubic feet) LNG bunker vessel by 2028.
The creation of the joint venture needs regulatory approvals.
TotalEnergies also agreed to supply Marseille-based CMA CGM with up to 360,000 metric tons of LNG annually from 2028 to 2040. The supply will support CMA CGM’s expansion of its LNG-powered fleet to 123 vessels by 2029, the statement said.
That new deal is on top of two previous supply agreements. In 2017 TotalEnergies agreed to deliver 300,000 metric tons of LNG a year to CMA CGM in Rotterdam for 10 years. In 2019 another 10-year agreement was penned for TotalEnergies to supply 250,000 metric tons per annum to CMA CGM at Marseille Fos.
CMA CGM chair and chief executive Rodolphe Saade said, “For the first time, a shipping company and an energy provider will jointly operate an LNG bunkering vessel, based in the port of Rotterdam”.
TotalEnergies counterpart Patrick Pouyanne commented, “We are proud to further contribute, alongside a partner like CMA CGM, to the development of an LNG bunkering supply chain in one of Europe’s leading port hubs”.
Earlier this year TotalEnergies and Oman’s state-owned OQ Exploration and Production SAOG (OQEP) started building a liquefaction plant with a capacity of one million metric tons per annum (MMtpa) to serve the Gulf’s marine fuel market.
As part of the $1.6-billion project, called Marsa LNG, the partners signed a charter for a new LNG bunkering vessel, which will be dispatched in Sohar from 2028 to supply LNG to container ships, tankers and cruise ships.
“Ideally located at the entrance to the Gulf, the Marsa LNG site has been selected to establish the first LNG bunkering hub in the Middle East”, TotalEnergies and OQEP said in a joint statement May 1.
TotalEnergies says it holds an integrated position in the LNG value chain from production, transportation, access to over 20 MMtpa of regasification capacity across Europe, trading and LNG refueling.
TotalEnergies aims to increase the share of natural gas in its sales mix to nearly 50 percent by 2030.
To contact the author, email jov.onsat@rigzone.com
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