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According to a statement by CNOOC Gas & Power, the signing ceremony was attended by Jin Shuping, VP of CNOOC Gas & Power, and Ronan Huitric, VP LNG marketing of TotalEnergies.
CNOOC’s unit said this is the third amendment on price review to the SPA between the two firms.
The company did not provide further details regarding the new amendment.
LNG Prime invited TotalEnergies to comment on the matter.
The initial long-term LNG SPA was signed in 2008, with an annual contract volume of 1 million tons per annum for a period of 15 years.
Back in 2018, TotalEnergies and state-owned CNOOC signed an amendment to the SPA to further strengthen their cooperation in the LNG business.
The partners have increased the contract volume from 1 Mtpa to 1.5 Mtpa of LNG, and have extended the term of contract to 20 years.
World’s third largest LNG player
TotalEnergies says it is the world’s third largest LNG player with a global portfolio of 44 Mt/y in 2023 thanks to its interests in liquefaction plants in all geographies.
The company benefits from an integrated position across the LNG value chain, including production, transportation, access to more than 20 Mt/y of regasification capacity in Europe, trading, and LNG bunkering.
TotalEnergies recently entered into into deals to supply LNG to Indian Oil and Korea South-East Power.
During the second quarter, TotalEnergies sold 8.8 million tonnes of LNG, down 20 percent compared to 11 million tonnes in the same period last year, and down 18 percent compared to 10 million tonnes in the prior quarter.
TotalEnergies said LNG sales decreased quarter-to-quarter notably due to lower spot purchases, in a context of lower LNG demand in Europe.
During January-June, LNG sales decreased 12 percent to 19.5 million tonnes.
Huge LNG capacity investment
China is the world’s largest LNG importer and CNOOC is investing heavily to increase its storage and regasification capacity.
CNOOC recently launched six LNG storage tanks each with the capacity of 270,000 cubic meters at its Binhai LNG import terminal in Jiangsu.
The tanks are about 65 meters high and have 100.6 meters in diameter.
These tanks add to the already four existing tanks with a capacity of 220,000 cbm.
CNOOC Gas & Power claims this is China’s largest LNG storage base.
Besides this expansion, CNOOC is expanding its facilities in Ningbo and Zhuhai with in total 11 storage tanks with a capacity of 270,000 cubic meters, it previously said.
Following completion of these projects, the total LNG tank capacity of CNOOC will reach 8,510,000 cubic meters, it said.