TotalEnergies has signed an agreement (HoA) with Jiangsu Guoxin Group, a major energy company in China Jiangsu Province, for the delivery of 900,000 tons of LNG per year. Subject to the finalization of the SPAs, this agreement is set to start in 2028, for 15 years.
The volumes will be delivered to Jiangsu Guoxin Group's new LNG terminal in Rudong for city gas supply and flexible power generation, helping to secure energy supply and meet peak demand across the province. Jiangsu is China's second-largest province in terms of both GDP and natural gas consumption volume.
This agreement further expands TotalEnergies LNG long-term sales portfolio in China, one of the world's largest importing and fastest growing LNG country.
'We are very pleased to have entered into this long-term agreement with Jiangsu Guoxin Group, which reflects the strength of our integrated LNG model and our ability to build enduring partnerships with leading local Chinese counterparties. Our ability to keep delivering LNG to our customers despite major disruptions this year demonstrates the resilience of our integrated global LNG portfolio to deliver reliable, competitive and flexible LNG supply to our customers. This agreement also highlights the role natural gas can play in the energy transition by supporting industrial development and providing greater flexibility for power generation in high-growth provinces such as Jiangsu', said Gregory Joffroy, Senior Vice President, LNG at TotalEnergies.
'We are very pleased to partner with TotalEnergies, a leading global LNG supplier. The signing of this agreement will effectively strengthen Jiangsu Guoxin Group's gas supply security and improve the operational efficiency of its infrastructure, while enhancing the resilience of its energy supply chain. It will help the Group further implement the new energy security strategy and better fulfil its responsibility as a provincial state-owned energy enterprise to ensure energy supply. It will also support Jiangsu Province in achieving its carbon peaking and carbon neutrality goals and promote high-quality economic development in the province,' said Zhang Wenxiang, Deputy General Manager of Jiangsu Guoxin Group.
Source: TotalEnergies
