TotalEnergies announced on September 24, 2024, 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 for seven years starting from 2027. The agreement aligns with TotalEnergies' strategy to grow its long-term LNG sales and strengthens the company's position in South Korea, the world's third-largest LNG importing country.

Agreement Structure and Pricing

The LNG supply contract features prices indexed to both Brent and Henry Hub natural gas benchmarks. The natural gas will supply one of HD Hyundai Chemical's industrial sites. Gregory Joffroy, Senior Vice President of LNG at TotalEnergies, stated that the agreement allows the company to continue securing long-term sales in Asia and reduce exposure to spot market gas prices.

Strategic Market Position

TotalEnergies positions itself as the world's third-largest LNG player, with a global portfolio of 44 million tons per year (Mt/y) in 2023. The company maintains interests in liquefaction plants across all geographies and benefits from an integrated position across the LNG value chain. This integration encompasses production, transportation, access to more than 20 Million Tonnes per Year of regasification capacity in Europe, trading, and LNG bunkering services.

The company has set an ambition to increase the share of natural gas in its sales mix to close to 50% by 2030. TotalEnergies aims to reduce carbon emissions and eliminate methane emissions associated with the gas value chain, while working with local partners to promote the transition from coal to natural gas.

Regional Energy Transition Role

According to TotalEnergies, LNG serves as a transition energy in Asia, mitigating the intermittency of renewable energy sources and reducing emissions when it replaces coal in electricity generation. The agreement with HD Hyundai Chemical represents part of this broader regional energy transition strategy.

Company Profile

TotalEnergies operates as a global integrated energy company that produces and markets multiple energy types, including oil and biofuels, natural gas and green gases, renewables, and electricity. The company employs more than 100,000 people and operates in approximately 120 countries. TotalEnergies states it places sustainability at the heart of its strategy, projects, and operations, with a commitment to provide energy that is more reliable, more affordable, and more sustainable to as many people as possible.

Connect with Decision-makers about the Latest LNG Regasification Plant Projects Around the World for business Opportunities.

Subscribe to our database on LNG Regasification Plant Projects and Tenders Around the World to get access to reliable and high-quality insights on upcoming, under-construction, and completed LNG Regasification Plant Projects across the world or in your desired geographical location.

Our user-friendly platform provides essential details, timely updates, key stakeholder contact information, and business opportunities tailored for engineering companies, industry professionals, investors, and government agencies.