TotalEnergies has signed a sales agreement with China’s Sinopec for the delivery of 2 million tonnes of liquefied natural gas (LNG) per year for 15 years, starting in 2028.
With the major agreement with one of the leading LNG players in the country, TotalEnergies has strengthened its long-term position in the LNG market in China, the largest market in the world.
The deal 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.
“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,” said Stéphane Michel, President Gas, Renewables & Power at TotalEnergies.
“Natural gas is an important enabler for realizing energy transition and dual carbon goals. 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,” added Niu Shuanwen, Senior Vice President of Sinopec Corporation.