The French giant TotalEnergies has just signed a new contract with a Chinese company, relating to liquefied natural gas (LNG). A new big blow for the company headed by Patrick Pouyanné.
A super contract for TotalEnergies concerning LNG
In a strategic move to consolidate its position in the liquefied natural gas (LNG) market, TotalEnergies announces the signing of a major contract with Sinopec, one of the largest Chinese companies in the energy sector. This agreement provides for the annual supply of 2 million tonnes of LNG from 2028, for a period of 15 years. This contract between TotalEnergies and Sinopec comes at a time when China is the world's leading importer of natural gas, a resource that has become essential in the energy transition of many countries.
For Beijing, this partnership aims to secure a reliable and sustainable source of supply. Indeed, natural gas, less polluting than coal, makes it possible to compensate for the intermittency of renewable energies, thus promoting a reduction in greenhouse gas emissions in electricity production.
Strategic positioning of TotalEnergies on the LNG market
For TotalEnergies, this contract is part of a long-term strategy aimed at minimizing the group's exposure to fluctuations in hydrocarbon prices. According to a company spokesperson, this agreement marks an important step in consolidating their presence in Asia, a continent where demand for liquefied natural gas is growing strongly.
TotalEnergies' strategy is increasingly focused on LNG, both in Asia and in the United States, where the group has just acquired a 45% stake in the Lewis Energy Group's dry gas assets in the LNG basin. 'Eagle Ford, Texas. This expansion into the US market, combined with its 16.6% share in the Cameron LNG liquefaction plant in Louisiana, gives TotalEnergies has an LNG export capacity which should reach 15 million tonnes per year by 2030.
