TotalEnergies Extends LNG Supply Agreement with CNOOC, Strengthening Chinese Market Position Until 2034
(IN BRIEF) TotalEnergies has extended its sales and purchase agreement with China’s CNOOC for an additional five years, committing to supply 1.25 million tons of liquefied natural gas (LNG) per year until 2034. This move enhances TotalEnergies’ long-term presence in the rapidly growing Chinese market, where natural gas is crucial for transitioning from coal to cleaner energy. The deal also helps TotalEnergies secure stable sales in Asia and reduces exposure to fluctuating spot market gas prices.
(PRESS RELEASE) PARIS, 19-Sep-2024 — /EuropaWire/ — TotalEnergies has announced a significant extension to its existing sales and purchase agreement (SPA) with CNOOC, a major player in China’s energy sector. Under the new terms, TotalEnergies will supply 1.25 million tons of liquefied natural gas (LNG) annually to China for an additional five years, extending the contract until 2034.
This agreement bolsters TotalEnergies’ position in China, the world’s largest LNG importer, while aligning with its strategy to expand long-term LNG sales globally. In China, natural gas is seen as a pivotal energy source during the transition to renewable power, helping reduce emissions by replacing coal in electricity generation and providing backup for renewable energy.
“We’re pleased to further solidify our relationship with CNOOC, an essential partner for us in China,” commented Gregory Joffroy, Senior Vice President of LNG at TotalEnergies. “This extension ensures stable long-term sales in Asia and reduces our reliance on the spot market’s volatile gas prices.”
With this extension, TotalEnergies continues to strengthen its presence in the growing Chinese market, positioning itself as a key player in the global LNG sector.
TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.
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First published in this link of EuropaWIRE.
