TotalEnergies to Supply 2 mtpa of LNG to Sinopec for 15 Years

(Energy Analytics Institute, 4.Nov.2024) — TotalEnergies signed a sales agreement (HoA) with Sinopec for the delivery of 2 million tonnes per annum (mtpa) of LNG for 15 years, starting in 2028.

With the agreement, TotalEnergies strengthens its long-term position in the LNG market in China, the largest market in the world, TotalEnergies announced 4 Nov. 2024 in an official statement. 

“We are delighted to have been chosen by Sinopec to supply 2 million tons 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,” TotalEnergies President Gas, Renewables & Power  Stéphane Michel said in the statement.

This agreement comes within the strategic cooperation agreement signed earlier this year between TotalEnergies and Sinopec during President Xi Jinping’s state visit to France. 

In China, natural gas is a key component of the energy transition as it mitigates the intermittency of rapidly growing renewable energies and helps reduce greenhouse gas emissions when it replaces coal in electricity production, TotalEneriges said in the statement.

“This HoA further strengthens the cooperation between the two companies in natural gas. Natural gas is an important enabler for realizing energy transition and dual carbon goals,” Sinopec Corporation Senior Vice President Mr. Niu Shuanwen said in the statement. “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.”

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