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.
TotalEnergies’ ambition is to increase the share of natural gas in its sales mix to close to 50% by 2030, to reduce carbon emissions and eliminate methane emissions associated with the gas value chain, and to work with local partners to promote the transition from coal to natural gas.
In line with its strategy to grow its long-term LNG sales, TotalEnergies also announced this week the signing of a Heads of Agreement (HoA) with BOTAŞ in Turkey for the delivery of 1.1 million tonnes of LNG per year for 10 years starting from 2027. The company recorded 44.3 Mt LNG sales in 2023.
Separately the company announced the start of production from the Fenix gas field, 60km off the coast of Tierra del Fuego in Southern Argentina.
The Fenix field is part of the Cuenca Marina Austral 1 (CMA-1) concession, in which TotalEnergies holds a 37.5% operated interest, alongside partners Harbour Energy (37.5%) and Pan American Energy (25%).
With a production capacity of 10 million cubic metres per day, the Fenix development consists of a new unmanned platform, in 70m water depth and connected to existing CMA-1 facilities.
Gas produced at Fenix is sent through a 35km subsea pipeline to the TotalEnergies-operated Véga Pléyade platform and treated onshore at the Río Cullen and Cañadon Alfa facilities.
