Regional LNG: TotalEnergies signs LNG supply deal with Hyundai Chemical
Tuesday, September 24 2024 - 06:21 PM WIB
By Romel S. Gurky
TotalEnergies announced on Tuesday (Sept 24) the signing of a Heads of Agreement (HoA) with HD Hyundai Chemical for the delivery of 200,000 tons of liquefied natural gas (LNG) per year over seven years, starting in 2027.
This agreement, with prices indexed to both Brent and Henry Hub, strengthens TotalEnergies' long-term position in South Korea, the world’s third-largest LNG importing country. In Asia, LNG serves as a vital transitional energy source, mitigating the intermittency of renewable energy and reducing emissions when it replaces coal in electricity generation.
“We are pleased with this agreement with HD Hyundai Chemical, which will supply natural gas to one of their industrial sites. This partnership allows us to secure long-term sales in Asia and reduce our exposure to spot market gas prices,” said Gregory Joffroy, Senior Vice President of LNG at TotalEnergies.
Read also : Regional LNG: TotalEnergies increases LNG deliveries to Asia with two new contracts
TotalEnergies is the world’s third-largest LNG player, with a global portfolio of 44 million tons per year (Mt/y) in 2023, thanks to its interests in liquefaction plants across various geographies. The company benefits from an integrated position across the LNG value chain, including production, transportation, and access to more than 20 Mt/y of regasification capacity in Europe, along with trading and LNG bunkering.
TotalEnergies aims to increase the share of natural gas in its sales mix to nearly 50% by 2030, in order to reduce carbon emissions, eliminate methane emissions associated with the gas value chain, and collaborate with local partners to promote the transition from coal to natural gas.
Editing by Reiner Simanjuntak