French energy giant TotalEnergies has signed a 16-year liquefied natural gas (LNG) supply deal with Singapore’s Sembcorp Industries.
TotalEnergies Gas & Power Asia and Sembcorp Fuels signed the sale and purchase agreement.
According to TotalEnergies, the deal entails the delivery of up to 0.8 million tons of LNG per annum (mtpa), starting in 2027.
Also, TotalEnergies said it will deliver the LNG supplies from its global portfolio.
The firm is the world’s third largest LNG player with a market share of around 12 percent and a global portfolio of about 50 mtpa, it said.
This new agreement adds to the companies’ current SPA, which runs until 2029.
The two firms signed this five-year LNG supply deal in October 2022.
GIIGNL data shows that this DES deal is for 0.25 mtpa of LNG.
Sempcorp said in a separate statement that this new SPA diversifies Sembcorp’s existing natural gas supply from piped and liquefied sources globally.
“As Singapore’s leading natural gas importer, Sembcorp is committed to supporting Singapore with a stable and resilient supply of energy in its transition towards a net-zero future,” the firm said.
In 2021, Singapore’s Energy Market Authority appointed Sembcorp Fuels as a new term LNG importer for Singapore, allowing it to import and sell regasified LNG to customers in the market.