France’s energy giant TotalEnergies has strengthened its global liquefied natural gas (LNG) position with a multi-year supply agreement that enables ADNOC Gas to provide up to 1.6 million tonnes of LNG, while the French player plans to ship 900,000 tonnes annually to China’s Jiangsu Guoxin Group from 2028.
TotalEnergies and ADNOC Gas have signed a five-year LNG supply agreement, under which the UAE firm will supply a total of up to 1.6 million tonnes of LNG, with the first deliveries expected as of 2026.
"The signing of this agreement with ADNOC Gas marks another important milestone in our long-standing partnership and highlights our commitment to deepening our cooperation over the long term. Thanks to its perfect location between Europe and Asia, this new supply will enable TotalEnergies to confirm its position as one of the main LNG portfolio supplier."
The French company has also inked a heads of agreement (HoA) with Jiangsu Guoxin Group for the delivery of 900,000 tons of LNG per year. As a result, this deal is set to start in 2028 and last for 15 years, subject to the finalization of the sale and purchase agreements (SPAs).
"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."
The volumes will be delivered to the Chinese player’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, further expanding TotalEnergies’ LNG long-term sales portfolio in China.
"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."