First LNG bunkering vessel in France: the shipping industry accelerates its energy transition

New targets, new fuels

Reducing greenhouse gas (GHG) emissions is one of the priorities of the shipping industry, with the International Maritime Organization (IMO) targeting a 50% reduction in emissions from the industry by 2050¹. The shipping industry is exploring zero-carbon fuels – such as hydrogen and electric power – with the goal of introducing the first commercially viable zero-emission ships by 2030². 

But to enable shipping companies to start reducing emissions today, transition fuels such as Liquefied Natural Gas (LNG) are part of the solution, providing significant air quality benefits and contributing to reduce CO2 emissions when compared to very low sulphur fuel oil – a significant first step in the shipping sector’s net-zero journey. 


A Landmark Project

The vessel ‘Gas Vitality’ is the very first LNG bunkering vessel to be deployed in France. 

Gas Vitality is ultimately owned by Japan-based Mitsui OSK Lines Ltd (MOL), one of the largest shipowners in the world. The vessel is chartered on a long-term basis to an affiliate of France-headquartered energy company TotalEnergies in the port of Marseille-Fos. The vessel is 135 meters long and 24 meters wide and will be able to load up to 18,600 m3 of LNG, stored in GTT Mark III membrane tanks. With this vessel, TotalEnergies will supply the new 15,000 TEU container ships of CMA CGM as well as the MSC Cruises liners running on LNG.

An Inaugural Sustainability Linked Loan supported by a Transition Framework

Societe Generale has co-structured a Transition Framework relying on MOL’s overarching climate ambitions and the Sustainability Linked Loan Principles³ published by the LMA⁴. 

Leveraging on MOL's climate transition set forth in the "MOL Group Environmental Vision 2.1.⁵" which commits the Group to achieve net zero GHG emissions by 2050 ahead of IMO’s ambitions, Societe Generale has helped MOL to develop a Transition Loan framework based on the Climate Transition Finance Handbook⁶ and the Sustainability Linked Loan Principles. 

Under the sustainability linked mechanism, the margin of the loan varies on a Key Performance Indicator (KPI). In this financing, the KPI is the average Energy Efficiency Operational Indicator (EEOI) of MOL’s fleet to be assessed on a yearly basis and targeting to align with the Paris Agreement objective of holding the increase in the global average temperature to well below 2°C above pre-industrial levels. 

The innovative loan structure has been reviewed by the third-party DNV Business Assurance Japan⁷, based notably on the Climate Transition Finance Handbook and the Sustainability Linked Loan Principles.


Societe Generale’s role in the maritime energy transition