The agreement is part of the French oil and gas giant's desire to protect itself from the falling context of hydrocarbon prices.
The French oil and gas giant Totalenergies will supply 2 million tonnes of natural gas per year to the Chinese company Sinopec for 15 years. The agreement announced Monday is part of the group's desire to protect itself from the falling context of hydrocarbon prices. Totalenergies announced “the signing of a sales agreement (HoA) with Sinopec, for the delivery of 2 million tonnes of LNG per year, for 15 years, from 2028”, in a press release.
The group thus intends to “strengthen its long-term positions on the LNG market in China, the largest market in the world”, thanks to this agreement. He recalls having signed a strategic cooperation agreement with Sinopec earlier in the year, on the occasion of President Xi Jinping's state visit to France.
“In China, natural gas is a vector of the energy transition because it compensates for the intermittency of rapidly growing renewable energies and contributes to reducing greenhouse gas emissions when it replaces coal in electricity production “, adds Totalenergies.
Agreements to sell 4 million tonnes of LNG in 2024
Stéphane Michel, President of Gas Renewables & Power at Totalenergies, was delighted that the group had been chosen “to supply 2 million tonnes of LNG to China, the largest importer country” in the world. “This agreement in principle strengthens cooperation between the two companies in the field of natural gas,” declared Niu Shuanwen, senior vice-president of Sinopec Corporation, who presents his company and Totalenergies as “strategic partners”.
In front of an audience of investors in New York, the French oil and gas giant Totalenergies indicated, at the beginning of October, that it was banking on long and medium-term LNG sales contracts to reduce its exposure to falling hydrocarbon prices, with, in total, agreements for 4 million tonnes which will be signed this year.
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