In a clear strategy to consolidate its presence in the liquefied natural gas (LNG) sector, TotalEnergies has signed a 15-year agreement with Sinopec , one of the most influential players in the Chinese energy market . The agreement, which will come into force in 2028, provides for the delivery of 2 million tons of LNG per year, reinforcing TotalEnergies’ capacity in Asia and its commitment to more sustainable energy.
TotalEnergies to supply LNG to support China’s energy transition
With this agreement, TotalEnergies ensures a constant flow of LNG to the world’s largest importing market and strengthens its role as the third global player in the sector. In 2023, the company already managed 44 million metric tons per year (Mt/y) , integrating operations at all points of the value chain, from production to regasification and distribution. This collaboration with Sinopec is in line with its ambition to increase the share of gas in its sales portfolio to 50% by 2030.
The relationship between TotalEnergies and Sinopec has been strengthened this year with a framework agreement for cooperation, signed during President Xi Jinping’s state visit to France. Both companies see natural gas as a key component in China’s energy transition . The country is seeking to replace coal with cleaner sources such as LNG, which contributes to significantly reducing greenhouse gas emissions and stabilises electricity grids in the face of intermittent renewable energy.
We are delighted to have been selected by Sinopec to supply LNG on a long-term basis. This agreement underlines our competitiveness and commitment to expanding in Asia.
Said Stéphane Michel, President of Gas, Renewables and Power at TotalEnergies.
For his part, Niu Shuanwen, vice president of Sinopec , emphasized the fundamental role of gas in the energy transition and his company’s intention to lead the change towards clean and diversified sources.
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Source: TotalEnergies
Photo: Shutterstock
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