TotalEnergies announced on Thursday a 5-year extension of its sales and purchase agreement with China National Offshore Oil Corporation (CNOOC) for the annual delivery of 1.25 million tons of liquefied natural gas (LNG) until 2034.
With this agreement, TotalEnergies strengthens its long-term positions in the growing Chinese market, the French oil major said in a statement.
The company stands as the world’s third largest LNG player with a global portfolio of 44 million tons in 2023.
In China, natural gas plays a vital role as a transitional energy source, helping to balance the intermittency of renewable power and significantly cutting emissions when replacing coal in electricity generation, according to the company.
‘This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices,’ Gregory Joffroy, senior vice president of LNG at TotalEnergies, said.
