
France-based TotalEnergies has announced that it has reached agreements with companies in China and Türkiye to supply liquefied natural gas (LNG) over multiple years.
Its deal with CNOOC of China involves extending an existing sales and purchase agreement (SPA) by a further five years.
TotalEnergies will now supply 1.25 million tons of LNG to CNOOC each year until 2034. The company says that will bolster its presence in China’s growing LNG market in the long term.
Natural gas plays a role in China’s energy transition by compensating for the intermittent nature of renewable energies, so together they can replace coal-based power generation.
TotalEnergies Senior Vice President Gregory Joffroy said about the deal with China:
“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.”
The company also signed a 10-year heads of agreement (HoA) with BOTAŞ of Türkiye, whereby it will deliver 1.1 million tons annually from 2027.
TotalEnergies, which also makes the Total range of coolant and lubricant products, is the third-largest LNG player in the world. Thanks to interests in various geographically dispersed liquefaction plants, its portfolio amounted to 44 million tons per year last year.
It says that by 2030, it aims for natural gas to account for almost half its sales, with it also striving to eliminate the methane emissions and reduce the carbon emissions resulting from the value chain for natural gas.