BAKU, Azerbaijan, November 5. TotalEnergies has taken a significant step in expanding its LNG business by signing a sales agreement with Sinopec to deliver 2 million tons of LNG annually for 15 years, commencing in 2028, Trend reports.
This deal enhances TotalEnergies' long-term position in China, the world’s largest LNG market.
The agreement builds on a strategic cooperation pact established earlier this year during President Xi Jinping's state visit to France. It underscores the role of natural gas in China's energy transition, where it serves to balance the increasing reliance on renewable energy sources and reduce greenhouse gas emissions by replacing coal in electricity generation.
“We are delighted to have been chosen by Sinopec to supply LNG to China,” stated Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies. “This new agreement demonstrates the competitiveness of TotalEnergies’ LNG business and allows us to continue growing our long-term sales in Asia.”
Niu Shuanwen, Senior Vice President of Sinopec Corporation, emphasized the strategic partnership between the two companies. “This agreement further strengthens our cooperation in natural gas, which is crucial for achieving energy transition and dual carbon goals,” he said. Niu added that Sinopec is committed to becoming a leading clean energy and chemical company, contributing positively to global energy governance and climate change efforts.