TotalEnergies has signed a Heads of Agreement (HoA) with HD Hyundai Chemical to deliver 200,000 tons of liquefied natural gas (LNG) annually over a seven-year period, commencing in 2027. This strategic move aims to enhance TotalEnergies' long-term LNG sales and solidify its position in South Korea, the world's third-largest LNG importer. The pricing for this agreement is indexed to both Brent crude oil and the Henry Hub natural gas index, providing TotalEnergies with a robust framework for managing costs and securing stable revenue.

In Asia, LNG plays a crucial role as a transitional energy source. It effectively addresses the challenges posed by the intermittency of renewable energy, while also significantly reducing emissions when used to replace coal in electricity generation. This aligns with broader efforts to promote cleaner energy alternatives in the region.

Gregory Joffroy, Senior Vice President of LNG at TotalEnergies, expressed satisfaction with the agreement, highlighting its significance in supplying natural gas to one of HD Hyundai Chemical’s industrial sites. He noted that this deal enables TotalEnergies to secure long-term sales in Asia while mitigating exposure to the volatility of spot market gas prices. By establishing this partnership, TotalEnergies reinforces its commitment to long-term energy solutions that align with both market demands and environmental goals.

The agreement is part of TotalEnergies' broader strategy to expand its LNG operations and meet the growing energy needs of the Asian market. As countries in the region increasingly turn to natural gas to complement their renewable energy initiatives, TotalEnergies is well-positioned to play a pivotal role in facilitating this transition.

TotalEnergies ranks as the third-largest player in the global LNG market, boasting a portfolio of 44 Mt/y in 2023 due to its investments in liquefaction plants across various regions. The company enjoys a comprehensive position throughout the LNG value chain, encompassing production, transportation, access to over 20 Mt/y of regasification capacity in Europe, trading, and LNG bunkering. TotalEnergies aims to increase the proportion of natural gas in its sales mix to nearly 50% by 2030, as part of its strategy to reduce carbon emissions, eliminate methane emissions linked to the gas value chain, and collaborate with local partners to facilitate the transition from coal to natural gas.

TotalEnergies is a global integrated energy company involved in the production and marketing of a variety of energy sources, including oil, biofuels, natural gas, green gases, renewables, and electricity. With a workforce of over 100,000 committed to providing reliable, affordable, and sustainable energy, the company operates in about 120 countries. Sustainability is central to TotalEnergies' strategy, projects, and operations, reflecting its core mission.