TotalEnergies Extends LNG Provide Settlement with CNOOC by 5 Years

TotalEnergies SE has prolonged its liquefied pure fuel (LNG) gross sales and buy settlement (SPA) with China’s CNOOC.

The SPA, which has been prolonged for 5 years, is for the supply of 1.25 million tons of LNG per 12 months to China till 2034, TotalEnergies mentioned in a information launch.

The settlement “strengthens its long-term place within the rising Chinese language market,” the corporate mentioned. It added that pure fuel “serves as an important transition vitality” within the nation, “mitigating the intermittency of renewable vitality sources and decreasing emissions when used as an alternative choice to coal in electrical energy technology”.

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“We’re happy to strengthen our ties with CNOOC, a key associate for the corporate on the earth’s largest LNG-importing nation. This settlement permits us to proceed securing long-term gross sales in Asia and cut back our publicity to identify market fuel costs,” mentioned Gregory Joffroy, Senior Vice President for LNG at TotalEnergies, mentioned.

TotalEnergies has additionally not too long ago signed one other settlement for LNG deliveries to Turkiye, in keeping with its technique to develop its long-term LNG gross sales. In a separate information launch, TotalEnergies mentioned it signed a heads of settlement (HoA) with BOTAŞ for the supply of 1.1 million tons of LNG per 12 months for ten years ranging from 2027.

“We’re happy to provoke a brand new long-term collaboration with BOTAŞ, a key associate for the Firm in Türkiye. This settlement allows us to safe long-term gross sales and cut back our publicity to identify market fuel worth fluctuations,” Gregory Joffroy, Senior Vice President for LNG at TotalEnergies, mentioned.

In July, TotalEnergies joined the Ruwais LNG venture with the acquisition of a ten p.c stake. Launched by ADNOC in June 2024, Ruwais LNG is a liquefied pure fuel (LNG) venture situated in Al Ruwais Industrial Metropolis, Abu Dhabi.

The venture consists of two liquefaction trains with a complete capability of 9.6 million tons per 12 months. The venture begin is predicted within the second half of 2028, in keeping with an earlier assertion. The opposite stakeholders are ADNOC with a 60 p.c stake, Shell with 10 p.c, BP with 10 p.c, and Mitsui with 10 p.c.

Launched in 2024, the venture consists of two liquefaction trains with a complete capability of 9.6 million tons per 12 months. Begin-up is predicted within the second half of 2028.

The venture applies the very best requirements to scale back emissions: its full-electric liquefaction trains will probably be provided with clear energy from the United Arab Emirates’ grid, making it one of many world’s lowest-carbon depth LNG crops. The power may even leverage the newest applied sciences to boost security, drive effectivity and decrease emissions.

“We’re delighted to hitch forces with our long-standing associate ADNOC on the event of this new LNG venture. Final 12 months at COP28, TotalEnergies and ADNOC each dedicated to guide the Oil & Fuel Decarbonization Constitution to scale back the trade’s GHG emissions. With Ruwais LNG, we’re placing this precept into apply with one of many world’s lowest-carbon depth LNG crops, permitting pure fuel to completely play its position of transition gasoline”, Patrick Pouyanné, Chairman and CEO of TotalEnergies, mentioned.

TotalEnergies mentioned it’s the world’s third largest LNG participant with a worldwide. The corporate advantages from an built-in place throughout the LNG worth chain, together with manufacturing, transportation, entry to regasification capability in Europe, buying and selling, and LNG bunkering.

To contact the writer, electronic mail rocky.teodoro@rigzone.com