June 04, 2024 [Upstream]- French supermajor TotalEnergies has secured two new liquefied natural gas supply commitments in Asia worth around 1.3 million tonnes per annum, as the company seeks to increase its global deliveries after a decline in LNG sales last year.
TotalEnergies announced a sales and purchase agreement with Indian Oil Corporation for the delivery of up to 800,000 tpa of LNG to India from 2026. Supplies are set to run for ten years.
A second contract was signed with Korea South-East Power for the supply of up to around 500,000 tpa of LNG to South Korea for five years from 2027.
These agreements allow TotalEnergies to secure medium-term outlets for its global LNG supply portfolio, the company said.
They also strengthen the company’s footprint in Asian markets where it is particularly committed to supporting its customers with their decarbonisation strategies, it added.
“We are delighted to have been selected by Indian Oil and Korea South-East Power to supply LNG to India and Korea. These contracts enable us to contribute to the energy security and transition of these countries, to which we have an enduring commitment,” said Gregory Joffroy, senior vice president for LNG at TotalEnergies.
The announcement on Tuesday follows a similar contract with Singapore-based Sembcorp Fuels, a wholly owned subsidiary of Sembcorp Industries that was concluded in February.
The deal entails the delivery of up to 800,000 tpa of LNG to Sembcorp Fuels for a duration of 16 years, commencing in 2027.
TotalEnergies is the world’s third largest LNG player, with global LNG sales of 44.3 million tonnes in 2023 and 48.1 million tonnes in 2022.
However, just about one-third of these sales are backed by TotalEnergies’ own LNG production, which declined to 15.2 million tonnes last year from 17 million tonnes in 2022.
The company plans to develop several key LNG projects, including Qatar North Field Expansion, Papua LNG, Energia Costa Azul LNG, Rio Grande LNG in the US and Mozambique LNG.
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