As part of its strategy to expand its Liquefied Natural Gas (LNG) operations, TotalEnergies has signed a significant Heads of Agreement (HoA) with Sinopec, committing to deliver 2 million tons of LNG annually over a 15-year period, beginning in 2028. This landmark agreement solidifies TotalEnergies’ presence in China’s booming LNG market and aligns with the company’s broader goals to support Asia’s energy transition and increase its LNG footprint globally.
This agreement follows a strategic cooperation established earlier this year between TotalEnergies and Sinopec, a leading Chinese state-owned energy enterprise, during a high-profile state visit by President Xi Jinping to France. Through this partnership, TotalEnergies and Sinopec aim to enhance the role of LNG as a cleaner energy source in China, which holds the world’s largest LNG demand. In China’s rapidly evolving energy landscape, LNG is increasingly crucial for reducing greenhouse gas emissions and providing a stable alternative to coal in electricity generation, supporting the country’s goal to transition to more sustainable energy sources.
Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, expressed enthusiasm about the collaboration: “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.”
Mr. Niu Shuanwen, Senior Vice President of Sinopec Corporation, highlighted the strategic nature of the partnership, noting: “Sinopec and TotalEnergies are strategic partners. This HoA further strengthens the cooperation between the two companies in natural gas. Natural gas is an important enabler for realizing energy transition and dual carbon goals. Sinopec is committed to building the world’s leading clean energy and chemical company and will continue to promote energy transition and the clean, diversified, and secure supply of energy. Sinopec strives to make positive contributions to global energy governance and climate change.”
TotalEnergies: A Leading Global LNG Player
TotalEnergies is currently the world’s third-largest LNG producer, with a comprehensive portfolio of 44 million tons per year (Mt/y) in 2023. This expansive presence is underpinned by its investments in liquefaction plants across various regions and its role in all stages of the LNG value chain—from production and transportation to regasification, trading, and LNG bunkering. The company has access to more than 20 Mt/y of regasification capacity across Europe, reinforcing its integrated approach and enabling it to meet long-term LNG demand across multiple continents.
As part of its ambition to boost natural gas within its energy mix, TotalEnergies aims to increase the share of natural gas to nearly 50% by 2030, as it seeks to reduce its carbon emissions and eliminate methane emissions within its gas value chain. This approach aligns with TotalEnergies’ sustainability strategy and its commitment to collaborate with local partners, such as Sinopec, to facilitate a shift from coal to natural gas in key markets.
About TotalEnergies
TotalEnergies is a global integrated energy company, producing and marketing diverse forms of energy, including oil, biofuels, natural gas, green gases, renewables, and electricity. With a workforce of over 100,000 employees across approximately 120 countries, the company emphasizes sustainability and innovation at the core of its operations, projects, and strategic initiatives, delivering reliable, affordable, and environmentally responsible energy solutions worldwide.
This long-term agreement with Sinopec marks a milestone in TotalEnergies’ journey to support cleaner energy solutions and underscores its role as a leader in LNG’s growth and distribution globally.
Source TotalEnergies