TotalEnergies has signed an agreement with Sinopec to supply two million tonnes per annum (mtpa) of LNG over a 15-year period, commencing in 2028.

The deal reinforces TotalEnergies' long-term presence in China's burgeoning LNG market, which is currently the largest in the world.

TotalEnergies Gas, Renewables & Power president Stéphane Michel said: “We are delighted to have been chosen by Sinopec to supply two million tonnes of LNG to China, the largest LNG importing country in the world.

“This new agreement demonstrates the competitiveness of TotalEnergies’ LNG business and allows us to continue growing our long-term sales in Asia.”

The partnership, which aligns with TotalEnergies' strategy to expand its LNG operations, was solidified through a heads of agreement (HOA) and is part of a broader strategic cooperation with Sinopec.

This collaboration was initiated earlier in the year during Chinese President Xi Jinping's state visit to France.

LNG is increasingly viewed as a critical element in the transition to cleaner energy in China as it provides a solution to the variability of renewable energy sources and offers a cleaner alternative to coal for electricity generation, thereby aiding in the reduction of greenhouse gas emissions.

Sinopec Corporation senior vice-president Niu Shuanwen said: “Sinopec and TotalEnergies are strategic partners. This HOA further strengthens the cooperation between the two companies in natural gas.

“Sinopec is committed to building the world's leading clean energy and chemical company and will continue to promote energy transition and the clean, diversified and secure supply of energy.”

This new commitment also builds on TotalEnergies' existing relationship with the Chinese energy sector.

In September, the company extended its LNG supply deal with China National Offshore Oil Corporation for an additional five years.

Under the revised terms, TotalEnergies will continue to deliver 1.25mtpa of LNG to China until 2034.