Total SA (FP.FR) said Monday that it has signed an agreement with French shipping company CMA CGM to supply around 300,000 tons of liquefied natural gas--or LNG--per year for 10 years, starting in 2020.
The deal, between CMA CGM and Total's affiliate Total Marine Fuels Global Solutions, will fuel CMA CGM's nine newbuild container ships with scheduled delivery from 2020 onwards, the oil-and-gas company said.
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Under this agreement, Total will provide a tailor-made solution for LNG supply. The company is also considering chartering on a long-term basis a LNG bunkering vessel that would deliver fuel to CMA CGM in Europe and to other customers in the same region, it said.
The wider use of LNG as a fuel is an important component of Total's strategy, Chief Executive Patrick Pouyanne said. "This agreement highlights our involvement in developing dedicated supply chains for this new fuel," he added.
Chief Executive of CMA CGM Rodolphe Saade said that "the entire maritime industry will benefit from the new supply chains that will be created," adding that the deal consolidates "France's prominent role for a more sustainable transportation and in favor of the energy transition."
Total and CMA CGM also reached an agreement in principle on the supply of lubricants for the nine newbuilds, the company said, giving CMA CGM access to Total Lubmarine's products, technical-expertise and global-distribution network.
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(END) Dow Jones Newswires
December 04, 2017 06:13 ET (11:13 GMT)