TotalEnergies has announced a significant step in expanding its liquefied natural gas (LNG) business in Asia, signing a Heads of Agreement (HoA) with HD Hyundai Chemical to supply 200,000 tonnes of LNG annually for seven years, beginning in 2027.
The deal strengthens TotalEnergies’ position in South Korea, the world’s third-largest LNG importing country.
The pricing structure of the agreement is indexed to both Brent crude oil and Henry Hub natural gas, providing a balanced approach to pricing.
Gregory Joffroy, Senior Vice President of LNG at TotalEnergies said: “This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices.”
This deal aligns with TotalEnergies’ strategy to grow its long-term LNG sales and solidify its presence in the Asian market.
The company views LNG as a crucial transition fuel in Asia, helping to mitigate the intermittency of renewable energy sources, and reduce emissions when replacing coal in electricity generation.
TotalEnergies is currently the world’s third-largest LNG player, with a global portfolio of 44 million tonnes per year as of 2023.
The company aims to increase the share of natural gas in its sales mix to nearly 50 per cent by 2030, demonstrating its commitment to cleaner energy solutions.
This agreement with HD Hyundai Chemical represents another step towards TotalEnergies’ goal of reducing carbon emissions and eliminating methane emissions associated with the gas value chain.
