France’s TotalEnergies said it has signed a long-term deal to supply liquefied natural gas (LNG) to South Korea’s Hanwha Energy.
Under the 15-year deal, TotalEnergies will supply 600,000 metric tons of LNG per year, starting in 2024, from its global LNG portfolio.
According to a statement by TotalEnergies on Tuesday, the South Korean firm would receive the supplies at the Tongyeong regasification terminal in South Korea, and then supply Hanwha & HDC’s greenfield 1 GW power plant currently under construction next to the terminal.
TotalEnergies did not provide additional information regarding the contract.
The two firms are already partners on the Daesan petrochemical site, and in the United States for the development of 1.6 GW of renewables.
With this new contract, TotalEnergies increases its natural gas shipments to South Korea, the world’s third largest importer of LNG in 2021, said Stéphane Michel, President Gas, Renewables & Power at TotalEnergies.
“Our company is keen to support the country’s switch away from coal for power generation, with both LNG supplies and renewables projects, such as our significant “Bada” 2 GW offshore wind project,” Michel said.
“It is significant that we have secured business stability by signing a long-term contract with our long-lasting partner TotalEnergies, even though the volatility of the LNG market has increased more than ever due to the recent unstable international situation,” said Jung In Sub, CEO of Hanwha Energy.
The CEO said that the deal would serve as a “great foundation” for the company’s Tongyeong project, and “I think the success of the Tongyeong project will have a great impact on our future LNG businesses.”
