September 20, 2024 [Storage Terminals Magazine]- TotalEnergies has announced a five-year extension of its Sales and Purchase Agreement with CNOOC, securing the delivery of 1.25 million tonnes of liquefied natural gas per year to China until 2034. This extension aligns with TotalEnergies’ strategy to grow its long-term LNG sales and solidifies its position in the expanding Chinese market.

China, the world’s largest LNG importer, increasingly relies on natural gas as a transition fuel to support renewable energy sources and reduce coal emissions in electricity generation. Through this agreement, TotalEnergies strengthens its role in supporting China’s energy transition, while also securing its LNG sales in Asia and mitigating exposure to spot market price fluctuations.

“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 ranks as the third-largest LNG player globally, with a portfolio of 44 million tons per year in 2023, supported by its interests in liquefaction plants worldwide. The company holds an integrated position across the entire LNG value chain, from production and transportation to regasification and trading. TotalEnergies aims to increase the share of natural gas in its energy mix to 50 percent by 2030, promoting the transition from coal to natural gas, reducing carbon emissions, and eliminating methane emissions across the gas value chain.

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