CMA CGM in $3bn methanol, LNG ship deal

French shipping firm CMA CGM has signed a $3bn agreement with Chinese shipbuilder China State Shipbuilding Corporation (CSSC) to build 16 methanol and LNG-fueled container ships.

The deal calls for 12 methanol ships at 15,000 20ft equivalent units (TEU) and four LNG dual-fuel vessels at 23,000 TEUs.

The LNG ships are likely a continuation of a series of vessels ordered by CMA CGM beginning in 2020, but the methanol vessels are part of a new agreement with CSSC.

CMA CGM first took a delivery of a LNG ship, Jacques Saade, in September 2020. In 2021 it ordered 12 LNG-fueled ships.

Earlier this year, one of CMA CGM's LNG vessels, Concorde, refueled in Shenzhen, China. [Chinese state-controlled firm CNOOC supplied the comtainership with 6,000m³ of LNG] https://direct.argusmedia.com/newsandanalysis/article/2411563) in January.

The French shipping company also signed an agreement for green methanol supply with China-based shipping company Cosco Shipping and Shanghai International Port, which will begin at an undisclosed time.

CMA CGM has invested heavily in LNG and methanol as part of its alternative marine fuels strategy. The company has on order 77 LNG ships and six methanol ships, according to its latest sustainability report released earlier this year. The company said it cut its CO2 emissions by 50pc per TEU-km compared with 2008 levels.

According to its report, CMA CGM's marine fuel consumption went up slightly went up to 8.1mn t in 2022, compared with 8mn t in 2021. Its share of alternative marine fuels such as LNG and biofuels has increased significantly.

Its ships consumed 409,000t of very low-sulphur fuel oil (VLSFO)-equivalent LNG last year, compared with 205,000t of VLSFO-equivalent LNG in 2021. For biofuels, its consumed 99,000t in 2022 and 22,000t the year before, the company's report shows.

By Luis Gronda