Total has signed an LNG Cooperation Agreement with China National Offshore Oil Corporation (CNOOC), strengthening the relationship between the two companies.
Chinese LNG supply
Under the terms of an existing contract, Total has been supplying China with up to 1 million tpa of LNG since 2010. This contract is due to expire in 2025. In addition to agreeing on a price review regarding this existing supply, the two companies have established a framework for an additional supply of 1 million tpa of LNG, as well as further cooperation across the LNG value chain.
Total currently supplies over 8% of the Chinese market, supplying 5 million t of LNG between 2010 and 2014. Over the next few years, Total will benefit from additional supply sources in Australia, Russia and the US, adding to existing sources from the Middle East and Africa, in order to respond to China’s growing demand for LNG.
Comments
President, Total Upstream, Yves-Louis Darricarrère, commented: “As a world leader in LNG, Total seeks to strengthen its position in Asia’s growing LNG markets, where China is among the largest players with 20% annual growth. This new agreement allows us to expand our LNG supply and reinforces our cooperation with Chinese companies.”
Adapted from press release by Katie Woodward