France’s energy giant TotalEnergies has secured a multi-year deal to provide liquefied natural gas (LNG) to South Korea’s HD Hyundai Chemical. This boosts the French player’s LNG sales growth.
The heads of agreement (HoA) with HD Hyundai Chemical will see TotalEnergies deliver 200,000 tons of LNG per year for seven years, spanning the period from 2027 to 2033, with prices indexed both to Brent and Henry Hub.
The French player claims that this agreement strengthens its long-term position in South Korea, which is described as the world’s third-largest LNG-importing country, where the firm recently won an LNG supply agreement with Korea Gas Corporation (KOGAS).
As LNG serves as “a true transition energy” in Asia, the company believes that it mitigates the intermittency of renewable energy sources and reduces emissions when it replaces coal in electricity generation.
Gregory Joffroy , Senior Vice President, LNG at TotalEnergies, commented: “We are pleased with this agreement with HD Hyundai Chemical, which will supply natural gas to one of their industrial sites. This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices.”
TotalEnergies’ ambition is to increase the share of natural gas in its sales mix to around 50% by 2030, reduce carbon emissions, eliminate methane emissions associated with the gas value chain, and work with local partners to promote the transition from coal to natural gas.
Recently, the firm’s board of directors confirmed the relevance and progress of its strategy as a differentiated and profitably growing energy major and decided to adjust the pace of share buybacks to the energy environment to face economic and geopolitical uncertainties and retain room to maneuver.
TotalEnergies’ board of directors highlighted the relevance of the French player’s profitable growth transition strategy anchored on two pillars: oil and gas, mainly LNG, and integrated power.
The company is also expanding its oil and gas footprint, as illustrated by the addition of four offshore exploration permits in Liberia.