TotalEnergies to supply ‘world’s largest LNG importing country’ with natural gas until 2034

France’s energy giant TotalEnergies has landed a five-year extension of its liquefied natural gas (LNG) sales and purchase agreement (SPA) with Chinese state-owned oil and gas giant China National Offshore Oil Corporation (CNOOC).

The extension deal, which is said to be in line with the French firm’s strategy to grow LNG sales, entails the delivery of 1.25 million tons of LNG per year to China until 2034.

“We are pleased to strengthen our ties with CNOOC, a key partner for the Company in the world’s largest LNG importing country. 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.

TotalEnergies believes this agreement will strengthen its long-term position in the growing Chinese market. Natural gas serves as a key energy source in the Asian country’s transition to renewable energy sources, reducing emissions when used as a substitute for coal in electricity generation.

A few days ago, the French giant scored a ten-year heads of agreement (HoA) with Türkiye’s BOTAŞ to deliver 1.1 million tons of LNG per year for a decade, starting in 2027. The firm was also one of the six companies applying for three CO2 storage areas on the Norwegian Continental Shelf (NCS) as part of the seventh call for CO2 storage in the area.

Meanwhile, CNOOC started production from its 100% operated Liuhua 11-1/4-1 oilfield revitalization project in the eastern South China Seat. The area encompasses two oilfields, Liuhua 11-1 and Liuhua 4-1, and features a new deepwater jacket platform, called Haiji-2, and a cylindrical floating production, storage, and offloading (FPSO) unit, Haikui-1.