TotalEnergies has announced a five-year extension of its sales and purchase agreement (SPA) with CNOOC, for the delivery of 1.25 million tonnes of LNG per year to China until 2034.
The move strengthens TotalEnergies’ long-term position in the growing Chinese market, where natural gas serves as a crucial transition energy, mitigating the intermittency of renewable energy sources and reducing emissions when used as a substitute for coal in electricity generation.
“We are pleased to strengthen our ties with CNOOC, a key partner for the company in the world’s largest LNG importing country. This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices,” said Gregory Joffroy, Senior Vice-President, LNG at TotalEnergies.
TotalEnergies is the world’s third largest LNG player with a global portfolio of 44 Mt/y in 2023 and interests in liquefaction plants in all geographies. It has access to more than 20 Mt/y of regasification capacity in Europe, trading, and LNG bunkering.
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