CMA CGM prepares for new sulfur regulations by inking deal with Total

France’s Total, the world’s fourth largest oil and gas company, will become a multi-fuel supplier for CMA CGM.    Marseilles-based container shipping company CMA CGM signed an agreement to have France’s Total, the world’s fourth-ranked international oil and gas company, supply it with fuel, the companies said Wednesday.
   The two companies said that under the three-year memorandum of understanding, they “will be combining their expertise to prepare for stricter fuel regulations in the shipping industry and further reduce the sector’s footprint by developing solutions that make container ships ever more environmentally-friendly.”
   In 2020, the International Maritime Organization is planning to implement a regulation requiring ships to burn fuel with a maximum sulfur content of 0.5 percent globally, or be equipped with scrubbers to remove sulfur before it is released into the atmosphere.
   Total will provide CMA CGM with:
     • Fuel oil with a sulfur content of 0.5 percent;
     • Fuel oil with a sulfur content of 3.5 percent for ships equipped with  scrubbers;
     • And liquefied natural gas (LNG), which has virtually no sulfur content and can help reduce carbon dioxide, nitrogen oxides and particulate matter.
   It is not clear how many ships CMA CGM plans to equip with scrubbers or plans to operate with LNG, but the company has entered into several deals in recent years to investigate or promote the use of LNG as a marine fuel.
   In October, CMA CGM and French energy company ENGIE said they had signed an agreement to undertake a technical and economic study on LNG as a fuel for tomorrow’s container ships, and to develop engineering specifications for a bunkering vessel adapted to LNG-powered container ships.
   CMA CGM said that agreement rounded out a research program it began in 2011 to design large capacity container ships that are friendly to the environment. Working with the Korean shipbuilder DSME, CMA CGM said it has designed a ship that could use LNG or fuel oil. The design was approved by the classification society Bureau Veritas.
   In a second project launched in 2015, CMA CGM is partnering with classification society DNV GL and several companies – GTT, ABB, Caterpillar and OMT – to design a large container ship that would be powered with a combined gas and steam turbine system.
   Total joined SEA-LNG, a new industry group promoting the use of LNG by ocean carriers, in December.
   Total Chairman and CEO Patrick Pouyanné said, “The new regulations require both marine fuel suppliers and shipping industry stakeholders to adapt quickly. That is why we are working hand in hand with CMA CGM, a long-standing partner.”
   Today, Total Marine Fuels was renamed Total Marine Fuels Global Solutions, and it said it intends to become a leading player in the LNG bunker market. In addition, Total is very active in marine lubricants, which it markets under the Lubmarine brand.