TotalEnergies pens charter deal with Spanish shipowner for new LNG bunker vessel

France’s energy giant TotalEnergies has signed a charter agreement with Spanish shipowner Ibaizabal for a new liquefied natural gas (LNG) bunker vessel of 18,600 cbm capacity. 

As disclosed, the vessel, owned by Ibaizabal, will supply LNG to a wide range of vessels (containerships, tankers, large cruise ships, ferries) at TotalEnergies’ LNG bunkering hubs to meet the highest technical and environmental standards.

In particular, this additional vessel might be deployed in Oman, where the Company is developing the Marsa LNG project with the objective of providing LNG to the shipping sector in the Gulf.

The company made a final investment decision for the project, which was designed to run on solar power and serve as the first LNG bunkering hub in the Middle East, in April this year.

This new vessel, currently being constructed by Hudong–Zhonghua Shipbuilding in China, will be delivered by the end of 2026 and will join TotalEnergies’ current fleet of three deployed LNG bunker vessels: the Gas Agility, which has been positioned in the Port of Rotterdam, the Gas Vitality, operated in the Port of Marseille and the Brassavola located in the Port of Singapore.

Gas Vitality, dubbed the first LNG bunker vessel to be based in France, was named at a ceremony in October 2021. The second vessel, Gas Agility, was delivered in April 2020 and is situated in the Dutch Port of Rotterdam.

TotalEnergies continues to push forward its multi-energy strategy with multi-billion dollar investments as it works on balancing the transition to low-carbon and green sources of supply and the attempts to fortify energy security scales. The energy player noted that LNG, which has been seen as a transitional marine fuel, helps cut greenhouse gas emissions by around 20% compared to conventional marine fuel.

Furthermore, the fuel has the potential to reduce emissions significantly more if bio or synthetic LNG is used.  It is also expected to improve the air quality by reducing nitrogen oxide (NOx) emissions by up to 85%, and it almost completely eliminates (by 99%) sulfur oxides (SOx) and fine particles, the company highlighted.

“We are very proud of this agreement with Ibaizabal, which reinforces our position as a main player in LNG bunkering,” said Louise Tricoire, TotalEnergies Senior Vice President, Aviation and Marine Fuels.

“With new LNG-fuelled vessels coming on stream at a rapid pace, we are committed to playing our part in responding to the sector’s increasing demand for this fuel which can help global shipping meet its decarbonization ambitions.”

“Ibaizabal is honoured to be chosen to carry out this Project as it falls within our strategy of decarbonizing the maritime industry, together with a leading company in the LNG field, while enhancing the already long-term relationship in shipping with TotalEnergies,” Jorge Zickermann, CEO Ibaizabal Group, added.