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Under the sales and purchase agreement (SPA), TotalEnergies will supply GSPC with 400,000 tons of LNG, amounting to six cargoes per year.
The deal is for 10 years, according to a statement by TotalEnergies.
TotalEnergies said the LNG supplies, sourced from its global portfolio and delivered to terminals on India’s west coast, will primarily serve GSPC’s industrial customers.
It will also supply Indian households for domestic use, businesses, and service stations for vehicles running on compressed natural cas (CNG), such as auto-rickshaws.
“This new deal underscores TotalEnergies’ leadership in the LNG domain and commitment to India’s energy transition and security of supply”, said Gregory Joffroy, senior VP LNG at TotalEnergies.
Milind Torawane, managing director at GSPC said this agreement marks a “major step towards reinforcing GSPC’s strategy to secure competitive LNG on a long-term basis, helping to bridge the growing natural gas demand-supply deficit in Gujarat and across India.”
“Partnering with TotalEnergies, one of the largest LNG players in the world, aligns with GSPC’s strategy to build up its long-term portfolio and become a leading Indian player in gas trading”, Torawane said.
In Gujarat, GSPC, along with its other group companies, supplies one-third of the natural gas demand in the Indian state, catering to 2.3 million households and 20,000 industrial and commercial clients, and operates over 800 CNG stations.
GSPC LNG operates the 5 mtpa Mundra LNG import terminal in Gujarat.
TotalEnergies boosting LNG business
TotalEnergies says it is the world’s third largest LNG player with a global portfolio of 40 Mt/y in 2024 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.
During 2024, TotalEnmergies sold 39.8 million tonnes of LNG, down 10 percent compared to the year before due to lower demand in Europe.
This GSPC deal could be the contract that was revealed during the TotalEnergies’ strategy and outlook presentation in New York in October last year.
TotalEnergies did not reveal the name of the Indian buyer at the time, but that contract is similar to today’s deal.
The French company was quite active last year with signing Asian LNG supply deals.
In November 2024, TotalEnergies signed a heads of agreement with China’s state-controlled energy giant Sinopec to supply the latter with two million metric tons of LNG per year for 15 years.
Before this deal, TotalEnergies signed six Asian contracts last 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.
TotalEnergies also 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.