Oil & Gas

France's Total Energy has unveiled new global liquefied natural gas (LNG) deals with two companies, one in India and one in South Korea, enhancing its portfolio and supporting energy transition efforts. The first 10-year agreement involves exporting 800,000 tonnes per year of LNG to the Indian Oil Corporation (IOCL) starting in 2026. The second contract entails the sale of up to 500,000 tonnes per year of LNG to South Korea's Korea South-East Power for five years beginning in 2027.

These deals follow a similar agreement made in February 2024, where Total Energy committed to exporting 800,000 tonnes of LNG annually to Singapore-based Sembcorp Fuels over a 16-year period starting in 2027. According to Total's statement, these agreements help secure long-term outlets for its global LNG portfolio and strengthen its presence in foreign markets, while supporting decarbonization strategies for its consumers.

Total's senior vice president of LNG, Gregory Joffroy, expressed satisfaction with the selection by Indian Oil Corporation and Korea South-East Power to supply them with LNG. He emphasized that these deals would contribute to energy security and transformation in India and Korea, nations with which Total has ongoing commitments.

Total Energy, the world's third-largest LNG company, noted an 8% year-on-year drop in its own LNG production to 15.2 million tonnes last year. In the first quarter of 2024, sales declined to 10.7 million tonnes, a 3% decrease compared to the same period the previous year. The decline was attributed to lower demand in Europe due to warm weather and high inventories. Total aims to boost the LNG share in its portfolio to 50% by 2030, focusing on reducing emissions and promoting the shift from coal to natural gas through various global projects, including major developments in Qatar, Papua New Guinea, Mexico, the United States, and Mozambique.