France’s energy giant TotalEnergies has struck a new deal with India’s state-owned oil and gas company, Gujarat State Petroleum Corporation (GSPC), to provide around six liquefied natural gas (LNG) cargoes for ten years.
Thanks to this multi-year sale and purchase agreement (SPA), TotalEnergies will supply GSPC with 400,000 tons of LNG, amounting to six cargoes per year, starting from 2026. This LNG will be sourced from the French firm’s global portfolio and delivered to terminals on India’s west coast.
Gregory Joffroy , Senior Vice President of LNG at TotalEnergies, commented: “We are delighted to have been chosen by GSPC to supply them with LNG in India. This new deal underscores TotalEnergies’ leadership in the LNG domain and commitment to India’s energy transition and security of supply.”
While the LNG will primarily serve GSPC’s industrial customers, it will also supply Indian households for domestic use, businesses, and service stations for vehicles running on compressed natural gas (CNG), such as auto-rickshaws.
Milind Torawane , Managing Director at GSPC, remarked: “This agreement marks a major step towards reinforcing GSPC’s strategy to secure competitive LNG on a long-term basis, helping to bridge the growing natural gas demand-supply deficit in Gujarat and across India.
“Partnering with TotalEnergies, one of the largest LNG players in the world, aligns with GSPC’s strategy to build up its long-term portfolio and become a leading Indian player in gas trading. This deal will further strengthen GSPC’s portfolio and its operations in the gas value chain, leveraging GSPC Group’s transmission and distribution infrastructure.”
According to TotalEnergies, natural gas will play a pivotal role in India’s energy transition as a cleaner alternative for industrial activities, cooking, and transportation, enhancing air quality by slashing greenhouse gas (GHG) emissions and pollution.
The French energy giant added Oil India Limited (OIL) to the list of companies using its drone-based methane detection technology across oil and gas assets in 2024 to help curtail the methane footprint from operations.
This follows the endorsement of the Oil & Gas Decarbonization Charter at COP28 , when TotalEnergies penned cooperation agreements with Petrobras , SOCAR , Sonangol , and NNPCL to carry out methane detection and measurement campaigns on oil and gas facilities in Brazil, Azerbaijan, Angola, and Nigeria.
The European oil major, determined to continue with its multi-energy strategy, allocated $80-$90 billion over the next five years to propel its two-pillar transition strategy forward, as it goes after oil, gas, and LNG alongside electricity growth, setting aside around 27.8% or $25 billion of its total planned investment from 2025 to 2030 for low-carbon energies.
Recently, another oil major secured work offshore India thanks to a tender launched by Oil and Natural Gas Limited (ONGC), which will enable BP to take care of the decline in hydrocarbon production levels at a huge offshore oil field.