Total Marine Fuels Global Solutions (TMFGS) and Pavilion Gas have recently signed Heads of Agreement to jointly develop a Liquefied Natural Gas (LNG) bunker supply chain in the Port of Singapore. The agreement covers the shared long-term time charter of a new generation LNG bunker vessel to be commissioned by Pavilion Gas by 2020. It also includes an LNG supply arrangement between the two companies enabling Total to deliver LNG bunker to its customers.
The agreement, signed on the side-lines of the World Gas Conference 2018, follows a Memorandum of Understanding concluded by both companies in April 2017 on LNG bunkering cooperation in Singapore. The new agreement is a significant step forward and contributes to the development of Singapore as an LNG bunkering hub.
Total Marine Fuels Global Solutions is pursuing its ambition to develop the LNG bunker market. The first milestones of its strategy were set in Europe, with the signature of LNG bunker supply contracts for Brittany Ferries and CMA CGM, as well as agreeing a long-term charter for a Mitsui O.S.K. Lines bunker vessel to be positioned in Northern Europe.
The move toward LNG as a bunker fuel has been driven by the decision of the International Maritime Organization (IMO) to set limits on sulphur content in marine fuels from 2020. LNG does not emit sulphur oxides and is an available and competitive solution. LNG is an energy source which contributes to the IMO’s long-term strategy of halving greenhouse gas emissions from ships by 2050.
For the Total Group as a whole, this is an important milestone, as it reasserts the group’s dedication towards ‘shaping tomorrow’s energy’. Working closely under the One Total initiative, the Group is taking action to integrate climate into its strategy for the future, gaining insights and helping to develop a market which currently lacks long-term LNG experience.
For Total Lubmarine, this is an opportunity to understand the alternative fuel challenges facing its customers – helping them to create lubrication solutions for a post 2020 market. Serge Dal Farra, Global Marketing Manager for Total Lubmarine stated:
“At the moment, there is very limited experience in the market with LNG for 2-stroke engines, and so it is too early to advise our customers and the wider community on what the exact challenges will be. However, through TMFGS’s partnership with Pavilion Gas, its charter contract with MOL, and Total’s role as a supplier for CMA CGM, we are well placed to see the challenges of LNG first hand. This will help us to create products and services that allow customers using LNG to optimize engine lubrication and therefore help control operational expenses.”