TotalEnergies has announced a five-year extension of its sales and purchase agreement (SPA) with CNOOC, ensuring the delivery of 1.25 million tons of liquefied natural gas (LNG) per year to China through 2034. This agreement is in line with TotalEnergies' strategy to expand its long-term LNG sales and strengthens its position in the rapidly growing Chinese market.

In China, natural gas plays a key role in supporting the country's energy transition. It acts as a reliable source of power, balancing the intermittency of renewable energy sources like solar and wind. Additionally, the use of natural gas as a substitute for coal in electricity generation significantly helps reduce emissions, contributing to China's decarbonization goals.

Gregory Joffroy, Senior Vice President of LNG at TotalEnergies, expressed his satisfaction with the extended partnership. "We are pleased to strengthen our ties with CNOOC, a key partner for the Company in the world’s largest LNG importing country. This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices," he said.

The extension of the SPA not only solidifies TotalEnergies' long-term sales in Asia but also minimizes the company's exposure to fluctuations in the spot market, providing greater stability in pricing. The partnership with CNOOC, China’s leading national oil company, further supports the growing demand for cleaner energy solutions in the country.

TotalEnergies is the world's third-largest LNG player, boasting a global portfolio of 44 million tons per year in 2023, thanks to its participation in liquefaction plants in multiple regions. The company holds an integrated position throughout the LNG value chain, including production, transportation, trading, access to over 20 million tons of regasification capacity in Europe, and LNG bunkering. TotalEnergies aims to increase the share of natural gas in its sales mix to nearly 50% by 2030, as part of its strategy to lower carbon emissions, eliminate methane emissions in the gas value chain, and collaborate with local partners to support the shift from coal to natural gas.

TotalEnergies is a global integrated energy company engaged in the production and marketing of various energy sources, including oil, biofuels, natural gas, green gases, renewables, and electricity. With a workforce of over 100,000 employees, the company is dedicated to delivering energy that is more reliable, affordable, and sustainable to as many people as possible. Operating in around 120 countries, TotalEnergies prioritizes sustainability in its strategy, projects, and operations, placing it at the core of its mission.