TotalEnergies and Sinopec Sign 15-Year LNG Supply Agreement for 2 million Tons Annually

TotalEnergies has announced a new sales agreement with China’s Sinopec to supply 2 million tons of Liquefied Natural Gas (LNG) annually over a 15-year period beginning in 2028. This contract, part of TotalEnergies' strategy to expand its LNG operations, aligns with the company's long-term ambitions in the rapidly growing Chinese LNG market. China is the world's largest importer of LNG, and through this deal, TotalEnergies strengthens its presence in a crucial market, supporting the country's energy transition goals by helping reduce reliance on coal and lowering greenhouse gas emissions.

This partnership builds on the strategic cooperation agreement signed earlier in the year between TotalEnergies and Sinopec, during Chinese President Xi Jinping’s state visit to France. For China, natural gas plays an essential role in the nation’s energy transition strategy, as it provides a more reliable energy source that complements the intermittency of renewable resources like solar and wind. Additionally, by replacing coal in electricity generation, natural gas significantly reduces greenhouse gas emissions, thus contributing to China’s dual carbon objectives and climate goals.

Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, expressed his enthusiasm about the collaboration with Sinopec, highlighting that the agreement underscores TotalEnergies’ competitive edge in the LNG sector and advances its strategic goal to expand LNG sales across Asia. “We are delighted to have been chosen by Sinopec to supply 2 million tons of 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,” Michel stated.

From Sinopec’s perspective, this deal reinforces its commitment to cleaner energy and its ambition to become a leader in sustainable energy supply. Mr. Niu Shuanwen, Senior Vice President of Sinopec Corporation, emphasized the importance of natural gas as a crucial component of China’s energy transition, noting its role in achieving the nation’s dual carbon goals. “Sinopec and TotalEnergies are strategic partners. This HoA enhances the collaboration between the two companies in the natural gas sector. Natural gas is an important enabler for realizing energy transition and dual carbon goals,” Shuanwen remarked. He added that Sinopec will continue to promote energy transition efforts and support a secure, clean, and diverse energy supply.

This agreement reflects the alignment of both companies’ goals to lead in cleaner energy initiatives and contribute positively to global energy governance and climate change mitigation. TotalEnergies’ strategic collaboration with Sinopec not only deepens the companies' relationship but also positions them as key players in China's journey towards sustainable energy solutions. Through this deal, both companies aim to foster a positive impact on the global energy landscape, driving progress in clean energy adoption and climate objectives.