French oil and gas major TotalEnergies has announced a five-year extension to its LNG supply deal with China National Offshore Oil Corporation (CNOOC).
Under the revised sales and purchase agreement, TotalEnergies will supply 1.25mtpa of LNG to China until 2034.
TotalEnergies views this agreement as a means to strengthen its long-term position in the growing Chinese market.
In China, natural gas plays a crucial role in the shift towards renewable energy, helping to lower emissions when it replaces coal in power generation.
TotalEnergies senior vice-president of LNG Gregory Joffroy said: “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.”
Earlier this week, TotalEnergies signed a ten-year deal with BOTAŞ, a Turkish energy company.
Under the deal, the French company will supply 1.1mtpa of LNG, starting in 2027.
As of 2023, TotalEnergies’ global LNG portfolio stood at 44mtpa.
In July this year, TotalEnergies reached an agreement with Abu Dhabi National Oil Company (ADNOC) to acquire a 10% stake in the proposed Ruwais LNG project.
Located in Al Ruwais Industrial City in Al Dhafra, Abu Dhabi, the Ruwais LNG project is set to be the first LNG export facility in the Middle East and North Africa to harness clean energy.
In June, TotalEnergies expanded its footprint in the Asian LNG market by securing new contracts with companies in India and South Korea.
The French energy company signed a ten-year agreement with Indian Oil Corporation and a five-year agreement with Korea South-East Power.
