TotalEnergies seals long-term LNG supply deal with South Korean player

France’s energy giant TotalEnergies has signed a multi-year heads of agreement (HoA) with HD Hyundai Chemical, the chemical division of the South Korean shipbuilding conglomerate HD Hyundai, to deliver liquefied natural gas (LNG) for servicing one of the East Asian firm’s industrial sites.

Starting in 2027, the French firm is set to deliver 200,000 tons of liquefied gas per year for seven years to South Korea, described as the world’s third-largest LNG-importing country. This comes on the heels of the energy major’s deal with the “world’s largest LNG importing country” disclosed last week.

“We are pleased with this agreement with HD Hyundai Chemical, which will supply natural gas to one of their industrial sites. This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices,” said Gregory Joffroy, Senior Vice President of LNG at TotalEnergies.

This is said to be in line with TotalEnergies’ multi-energy strategy to grow its long-term LNG sales and increase the share of natural gas in its sales mix to close to 50% by 2030. The energy giant also aims to cut carbon emissions and eliminate methane emissions associated with the gas value chain, while working with local partners to promote the transition from coal to natural gas.

With a global portfolio of 44 million tonnes per annum (mtpa) in 2023, the French firm claims to be the world’s third-largest LNG player, having interests in liquefaction plants in all geographies, as well as production, transportation, access to more than 20 mtpa of regasification capacity in Europe, trading, and LNG bunkering.

TotalEnergies recently started production from its Fenix field in southern Argentina. The resources from this low-emissions development are envisaged to contribute to maintaining the gas production plateau at another gas project the company is developing in the South American country’s Tierra del Fuego archipelago.