Thu Sep 19 07:24:04 UTC 2024: ## TotalEnergies Extends LNG Supply Deal with CNOOC, Strengthening Position in Chinese Market
**Paris, France – September 19, 2024 -** TotalEnergies, a global energy company, has announced a five-year extension of its sales and purchase agreement (SPA) with CNOOC, China’s largest offshore oil and gas producer. The deal secures the delivery of 1.25 million tons of liquefied natural gas (LNG) per year to China until 2034.
This extension reinforces TotalEnergies’ commitment to the growing Chinese market, where natural gas plays a crucial role in the energy transition. As a cleaner alternative to coal in power generation, natural gas helps reduce emissions and mitigate the intermittency of renewable energy sources.
“We are pleased to strengthen our ties with CNOOC, a key partner for the Company in the world’s largest LNG importing country,” said Gregory Joffroy, Senior Vice President, LNG at TotalEnergies. “This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices.”
As the world’s third largest LNG player, TotalEnergies operates a global portfolio of 44 million tons per year (Mt/y) of LNG. The company is active across the entire LNG value chain, from production and transportation to regasification, trading, and bunkering. TotalEnergies aims to increase the share of natural gas in its sales mix to 50% by 2030, while simultaneously reducing carbon emissions and eliminating methane emissions associated with the gas value chain.
The extension of the SPA with CNOOC demonstrates TotalEnergies’ commitment to supporting China’s energy transition and its growing reliance on natural gas. The deal also highlights the company’s strategic focus on securing long-term LNG sales in key markets and reducing its exposure to volatile spot market prices.
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