French energy giant signs deal to supply LNG to ArcelorMittal's plants in Gujarat

NEW DELHI: French energy giant Total on Thursday said it has signed a deal to supply imported LNG to ArcelorMittal Nippon Steel's (AMNS) steel and power plants in Gujarat.

Under the deal, Total will supply up to 0.5 million tonnes of liquefied natural gas (LNG) per year until 2026, a company statement said.

"The LNG will be sourced from Total's global portfolio and offloaded either in Dahej or Hazira LNG terminal, on the west coast of India," it said.

"AMNS will use the LNG to run its steel and power plants located in Hazira, Gujarat state."

AMNS India is a joint venture between ArcelorMittal (60 per cent) and Nippon Steel (40 per cent) that acquired Essar Steel in bankruptcy proceedings in 2019.

"We are pleased to partner with AMNS and to supply the growing industrial LNG demand in India, a country that aims to more than double the share of natural gas in its energy mix by 2030 compared to today," said Thomas Maurisse, Senior Vice President LNG at Total.

"The supply of LNG will contribute to the reduction of AMNS's carbon emissions, in line with Total's ambition to offer its customers energy products that emit less CO2 and to support them in their own low-carbon strategies."

While the pact strengthens Total's relationship with AMNS, the supply of gas in its liquid form (LNG) will contribute to the decarbonisation of the steel industry, which still relies heavily on coal.

Total is the world's second-largest privately owned LNG player, with a global portfolio of nearly 50 million tonnes per year by 2025 and a global market share of around 10 per cent.

It has interests in liquefaction plants in Angola, Australia, Egypt, the United Arab Emirates, the United States, Nigeria, Norway, Oman, Russia and Qatar, and markets LNG globally.