Under the deal, TotalEnergies will deliver 200,000 tons of LNG per year for seven years starting from 2027.
Thanks to this agreement, with prices indexed both to Brent and Henry Hub, TotalEnergies strengthens its long-term position in South Korea, the world’s third-largest LNG importing country, TotalEnergies said in a statement.
Gregory Joffroy, senior VP of LNG at TotalEnergies, said this deal will ensure natural gas supplies to one of HD Hyundai Chemical’s industrial sites.
“This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices,” he said.
TotalEnergies boosting LNG business
In line with its strategy to grow its long-term LNG sales, TotalEnergies and China’s CNOOC recently agreed to extend their existing long-term LNG supply and purchase deal.
The company announced a five-year extension of its SPA with CNOOC, for the delivery of 1.25 million tons of LNG per year to China until 2034.
Before this, TotalEnergies entered into a heads of agreement with Türkiye’s state-owned natural gas and LNG firm Botas.
Under this 10-year contract, Botas will receive 16 LNG cargoes or up to 1.6 billion cubic meters per year from TotalEnergies.
In addition, TotalEnergies entered into deals to supply LNG to Indian Oil and Korea South-East Power.
TotalEnergies says it is the world’s third largest LNG player with a global portfolio of 44 Mt/y in 2023 thanks to its interests in liquefaction plants in all geographies.
The company benefits from an integrated position across the LNG value chain, including production, transportation, 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 percent by 2030.
