TotalEnergies will supply Sembcorp, after establishing a Purchase and Sale Agreement for the supply of liquefied natural gas (LNG).
A promising LNG supply
This agreement involves the supply of up to 0.8 million tons per year of LNG for an extended period of sixteen years, starting its phases in 2027. And it will come from the extensive global portfolio of TotalEnergies s broad global portfolio, as mentioned in an official statement issued by the company.
This new pact reinforces the existing SPA agreement between the two companies, which will run until 2029, further consolidating their long-term business relationship.
TotalEnergies to supply Sembcorp
A TotalEnergies earnings report detailed that the company’s oil and gas production reached 2,462 barrels of oil equivalent per day (boepd) in the fourth quarter of 2023.
This performance benefited from a 7% increase in LNG production, which helped to partially offset the divestment of Canadian oil sands assets during the same period.
On the other hand, in November 2023, the company completed the sale of TotalEnergies EP Canada Ltd., which has a 31.23% working interest in the Fort Hills oil sands mining project, along with commitments to midstream associates, a Suncor Energy Inc. for an approximate amount of US$1.1 billion.
Sembcorp’s annual growth
For its part, Sembcorp Industries reported solid annual performance for 2023. Net income was up 38% year-on-year, reaching US$740 million, a higher benefit compared to 2022. This increase is mainly attributable to higher contributions from the gas and related services and renewable energy segments.
Specifically, net income recorded a 30 percent increase to US$601.26 million in 2023 from US$462.28 million in 2022. This rise is largely due to high energy prices in Singapore, reflecting Sembcorp’s ability to adapt and respond to market dynamics.
Satisfaction and projection
Wong Kim Yin, group president and CEO of Sembcorp Industries, expressed his satisfaction with the growth momentum seen in the renewable energy business during 2023. Entering into multiple long-term power purchase agreements (PPAs) has been key to securing solid revenues for the gas and related services sector.
This strategic approach not only reflects Sembcorp’s commitment to sustainability and corporate responsibility, but also demonstrates its ability to anticipate and adapt to global energy trends.
The signing of these agreements and the reported financial performance are testament to the company’s vision for the future and its commitment to innovation and operational excellence.
Consolidated alliance and support between companies
The collaboration between TotalEnergies SE and Sembcorp Fuels, together with the strategic agreements signed with QatarEnergy highlight the importance of international partnerships in strengthening energy security.
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Source: Rigzone
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