Oil & Gas

As part of its strategy to expand its Liquefied Natural Gas (LNG) business, TotalEnergies has announced the signing of a Heads of Agreement (HoA) with Sinopec for the delivery of 2 million tons of LNG annually for 15 years, beginning in 2028. This strategic deal further cements TotalEnergies' position in the world’s largest LNG market—China—which plays a crucial role in the global energy transition. The agreement follows a broader cooperation framework between the two companies, signed earlier this year during Chinese President Xi Jinping’s state visit to France.

This partnership highlights China’s growing demand for natural gas as it seeks to transition away from coal and increase its reliance on cleaner energy sources. Natural gas is key to China’s energy strategy, especially as it balances the intermittency of renewable energy sources like wind and solar, and strives to reduce greenhouse gas emissions. By securing this long-term deal with Sinopec, TotalEnergies strengthens its presence in China and positions itself as a key player in the country’s energy transition.

Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, expressed his satisfaction with the agreement, noting, "We are delighted to have been chosen by Sinopec to supply LNG to China, the largest LNG importing country in the world. This new agreement demonstrates the competitiveness of TotalEnergies’ LNG business and allows us to continue growing our long-term sales in Asia." The deal not only underscores the company's commitment to Asia but also aligns with its broader strategy to reduce carbon emissions and increase the share of natural gas in its energy portfolio.

As the world’s third-largest LNG player, TotalEnergies has built a global portfolio of 44 million tons per year (Mt/y) in 2023, supported by a strong presence across all parts of the LNG value chain—from production and transportation to regasification, trading, and LNG bunkering. The company aims to further reduce its carbon footprint by eliminating methane emissions and advancing the global shift from coal to natural gas. This partnership with Sinopec is another step toward achieving TotalEnergies' ambitious goals of increasing the share of natural gas in its sales mix to nearly 50% by 2030.