TotalEnergies inks 16-year LNG supply deal with Sembcorp
TotalEnergies inks 16-year LNG supply deal with Sembcorp - Offshore Energy
TotalEnergies inks 16-year LNG supply deal with Sembcorp
French energy major TotalEnergies and Sembcorp Fuels, a wholly-owned subsidiary of Singapore-based Sembcorp Industries, have signed a sale and purchase agreement (SPA) for the long-term LNG delivery to Sembcorp.
Specifically, the deal entails the delivery of up to 0.8 million tons of LNG per annum (mtpa) for a duration of 16 years, commencing in 2027, TotalEnergies said, adding that the LNG will be sourced from its global portfolio.
“By supplying this additional LNG supply to Singapore, TotalEnergies is contributing to the country’s energy security and to its decarbonization goals. This deal also reflects TotalEnergies’ commitment to supporting its customers in their transition to greater sustainability,” TotalEnergies stated.
To note, this new agreement adds to the two companies’ current LNG SPA, which runs until 2029. This deal was signed back in 2022.
As for TotalEnergies’ other recent LNG activities, it is worth noting that at the end of 2023, the French major commissioned the floating storage and regasification unit (FSRU) for LNG located in the port of Le Havre.
Moreover, the company signed two long-term LNG SPAs with Qatar’s state-owned energy major QatarEnergy for the supply of up to 3.5 mtpa of LNG from Qatar to France.
TotalEnergies noted that the company’s ambition is to increase its LNG production and long-term purchases by 50% by 2030, while continuing to reduce carbon emissions and eliminating the methane emissions associated with the gas value chain.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.