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TotaLEnergies said on Monday it will supply Sinopec with two million metric tons of LNG per year.
The deal is for 15 years, and the supplies are expected to start in 2028.
“Thanks to this major agreement with one of the leading LNG players in the country, TotalEnergies strengthens its long-term position in the LNG market in China, the largest market in the world,” the company said.
This agreement comes within the strategic cooperation agreement signed earlier this year between TotalEnergies and Sinopec.
“This new agreement demonstrates the competitiveness of TotalEnergies’ LNG business and allows us to continue growing our long-term sales in Asia,” Stéphane Michel, president of gas, renewables, and power at TotalEnergies.
Six Asian LNG contracts
Before this deal, TotalEnergies signed six Asian contracts signed this year for a total volume of 4 Mt/y.
TotalEnergies signed LNG supply deals with India’s IOCL for 0.8 Mt/y and also with Korea South-East Power (KOEN) for 0.5 Mt/y.
Moreover, the French firm signed a 16-year deal with Singapore’s Sembcorp for 0.8 Mt/y, and it announced a five-year extension of its SPA with CNOOC, for the delivery of 1.25 million tons of LNG per year.
Most recently, TotalEnergies signed a heads of agreement to supply LNG to South Korea’s HD Hyundai Chemical.
Under the deal, TotalEnergies will deliver 200,000 tons of LNG per year for seven years starting from 2027.
In addition, TotalEnergies also signed a long-term LNG supply deal with an unidentified Indian buyer.
The new deal was revealed during TotalEnergies’ strategy and outlook presentation in New York last month.
The deal is for 10 years, and TotalEnergies will supply 400,000 tons of LNG per year. It is scheduled to begin in 2026.
LNG sales
During the third quarter, TotalEnergies sold 9.5 million tonnes of LNG, down 9.5 percent compared to 10.5 million tonnes in the same period last year, but up 8 percent compared to 8.8 million tonnes in the prior quarter.
TotalEnergies said LNG sales increased quarter-to-quarter, mainly due to higher spot volumes, in a context of seasonal inventory replenishment.
During January-September, LNG sales decreased 11 percent to 29 million tonnes.
Hydrocarbon production for LNG in the third quarter was down 7 percent quarter-to-quarter to 465 kboe/d, notably linked to unplanned maintenance on the Inpex-operated Ichthys LNG plant in Australia.
The production rose compared to 433 kboe/d in the third quarter of 2023.