TotalEnergies extends LNG supply deal with CNOOC

China

PARIS, September 19, 2024 – TotalEnergies has signed a five-year extension to its LNG sales and purchase agreement with China’s CNOOC for the supply of 1.25 million tonnes per year (tpy) of LNG until 2034, the French supermajor announced on Thursday.

“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,” said Gregory Joffroy, senior vice-president, LNG at TotalEnergies.

The deal falls within TotalEnergies’s stated strategy to grow its portfolio of long-term LNG supply contracts. On Wednesday, the company announced a heads of agreement with Turkish NOC Botaş for the delivery of 16 LNG cargoes per year for an approximate total of 1.1 million tpy, starting from 2027.

TotalEnergies aims to increase the share of natural gas in its sales mix to close to 50% by 2030.

On its part, Botaş has been reinforcing its LNG intake arrangements with several long-term contracts signed this year, including one with Shell earlier this month for 2.8 million tpy starting from 2027.

Photo courtesy TotalEnergies