TotalEnergies, Sinopec Signed Long Term LNG Supply Agreement

SEATTLE (Oil Monster):  A new long-term supply deal between TotalEnergies and Chinese Sinopec was announced. The agreement covers a 15-year period starting in 2028 and a maximum annual delivery of 2 million tons of liquefied natural gas (LNG).

The deal is a component of TotalEnergies' global LNG operations expansion strategy. The rapidly expanding Chinese LNG market has been the company's main emphasis. The agreement will increase TotalEnergies' market share in the vital Chinese market. Additionally, it will promote the nation's energy transition goals by minimizing greenhouse gas (GHG) emissions and dependence on coal.

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A strategic cooperation deal between Sinopec and TotalEnergies was struck earlier this year during Chinese President Xi Jinping's state visit to France.

"TotalEnergies is thrilled to have been selected by Sinopec to supply 2 million tons of LNG to China," said Stephane Michel, President of Gas, Renewables & Power. According to Michel, the new deal shows how competitive TotalEnergies' LNG business is and enables the company to keep expanding its long-term sales in Asia.

Both businesses hope to further renewable energy adoption and climate goals through this agreement.