TotalEnergies SE has signed two new liquefied natural gas (LNG) contracts in Asia, in line with its strategy of growing its LNG business.
The Paris-based energy major signed a sales and purchase agreement (SPA) with Indian Oil Corporation (IOCL) for the delivery to India of up to 800,000 tons per year of LNG for ten years from 2026, it said in a news release.
TotalEnergies also signed an agreement with Korea South-East Power for the delivery to South Korea of up to around 500,000 tons per year of LNG for five years from 2027.
The agreements allow TotalEnergies to secure medium-term outlets for its global LNG supply portfolio, it said. The company is targeting to strengthen its footprint in Asian markets, where it is “particularly committed to supporting its customers with their decarbonization strategies,” it added.
“We are delighted to have been selected by IOCL and Korea South-East Power to supply LNG to India and Korea. These contracts enable us to contribute to the energy security and transition of these countries, to which we have an enduring commitment,” Gregory Joffroy, TotalEnergies Senior Vice President for LNG, said.
TotalEnergies claims to be the world’s third largest LNG player with a global portfolio of 44 million metric tons per year in 2023 due to its interests in liquefaction plants in all geographies. The company benefits from an integrated position across the LNG value chain, including production, transportation, access to more than 20 million metric tons per year of regasification capacity in Europe, trading, and LNG bunkering.
TotalEnergies said its ambition is to increase the share of natural gas in its sales mix to close to 50 percent by 2030, to reduce carbon emissions and eliminate methane emissions associated with the gas value chain, and to work with local partners to promote the transition from coal to natural gas.
In 2019, the company made final investment decisions in three major projects: Arctic LNG 2 in Russia with a production capacity of 19.8 million metric tons per year); Mozambique LNG, with a production capacity of 12.9 million metric tons per year; and NLNG Train 7 in Nigeria with a production capacity of 7.6 million metric tons per year.
Last month, a TotalEnergies joint venture (JV) announced a study for the implementation of a large green hydrogen project named H2 Notos in Tunisia for export to Central Europe through pipelines. TE H2, a joint venture between TotalEnergies and EREN Groupe, and Austria’s leading electricity company Verbund have inked a memorandum of understanding with the Republic of Tunisia for the study, TotalEnergies said in an earlier news release.
Aiming to produce 200,000 tons of green hydrogen annually during its initial phase, the project has the potential to scale up production to one million tons per year in South Tunisia. The project will have access to the European market through the SoutH2 Corridor, a hydrogen pipeline project connecting North Africa to Italy, Austria, and Germany, which is expected to be commissioned around 2030.
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