CMA CGM switches methanol containership order to LNG fuel

French shipping giant CMA CGM has decided to switch a recent order it placed in China for eight methanol-powered containerships to LNG fuel, according to shipbuilding sources.

China’s Shanghai Waigaoqiao Shipbuilding, part of CSSC, announced on September 27 that it has signed a contract with an European owner to build eight containerships with a capacity of 9,200 teu.

The shipbuilder did not mention CMA CGM in the statement.

SWS claimed this is the world’s largest order for methanol-powered vessels.

It said that these medium-sized containerships with a length of 299.9 meters and a width of 45.6 meters will feature methanol dual-fuel propulsion, the first time for SWS to enter the methanol dual-fuel market.

CSSC Holdings said in a separate stock exchange filling that the order is worth about $1 billion with the deliveries starting in 2027.

However, it seems that CMA CGM changed its mind regarding the order and has opted to use LNG fuel instead of methanol for these vessels, shipbuilding sources told LNG Prime on Wednesday.

It remains unclear whether CMA CGM and SWS have already amended the order or the new deal will be signed soon.

The sources said that one of the main reasons behind this decision could be that there is no availability of “green methanol” and a high price of the fuel produced either from biomass or captured carbon and hydrogen from renewable power.

CMA CGM instead decided to proceed with LNG fuel for these vessels, such is the case with the majority of its newbuild containerships.

The firm, one of the world’s largest backers of LNG as fuel, previously said that LNG is the “best solution” currently available to reduce the environmental impact of shipping.

In addition, the group’s large fleet of LNG-powered ships can already run on biomethane and synthetic methane (e-methane), thereby reducing greenhouse gas emissions even more, it said.

CMA CGM said in its recent third-quarter report it has already invested more than $17 billion in a fleet of nearly 120 LNG- and methanol-powered ships scheduled for delivery by 2027.

LNG-powered vessels for La Meridionale

Besides this move, CMA CGM’s ropax unit La Meridionale unveiled the desing of two LNG-powered vessels which will be able to accommodate 1,000 passengers.

Earlier this year, CMA CGM finalized its acquisition of compatriot La Meridionale saying that it plans to order two LNG-powered vessels to work between Corsica and Marseille.

The French-flagged vessels will be 180 meters long, 30.8 meters wide, and will have 264 cabins.

La Meridionale said it will take delivery of these two LNG-powered vessels in the first quarter of 2027.

Most Popular

BW upgrades LNG carrier

Oslo-based BW LNG, a unit of Singapore’s gas shipping giant BW, is upgrading its 2019-built LNG carrier BW Pavilion Aranda with a sub-cooler.

Samsung Heavy bags orders for six LNG carriers

South Korean shipbuilding giant Samsung Heavy Industries has secured contracts worth $1.54 billion to build six liquefied natural gas (LNG) carriers.

Sempra, ConocoPhillips seal another 20-year Port Arthur LNG SPA

US energy giant ConocoPhillips has signed a deal with compatriot LNG exporter Sempra Infrastructure, a unit of Sempra, to buy a total of 80 million tonnes of LNG from the proposed second phase of the Port Arthur LNG project in Texas. With this deal, ConocoPhillips will buy a total of 180 million tonnes of LNG from both Port Arthur phases.

More News Like This

CMA CGM to invest in Vanguard to secure bio-LNG for its vessels

French shipping giant CMA CGM will make a minority investment in US-based renewable natural gas producer Vanguard Renewables, a part of BlackRock's GIP, to secure bio-LNG supplies for its large fleet of dual-fuel vessels.

TotalEnergies, CMA CGM to launch LNG bunkering JV

French energy giant TotalEnergies and compatriot shipping firm CMA CGM have signed a deal to develop a 50/50 logistics joint venture dedicated to the implementation and operation of an LNG bunkering supply solution at the Dutch port of Rotterdam.

CMA CGM in talks with Indian yards for LNG-powered vessels

French shipping giant CMA CGM is in negotiations with Indian shipbuilders to build LNG-powered container vessels, according to India's Ministry of Ports, Shipping and Waterways.

EPS in 400th LNG bunkering operation

Singapore’s Eastern Pacific Shipping has completed its 400th ship-to-ship LNG bunkering operation, as the company’s fleet of LNG-fueled ships continues to expand.