TotalEnergies signs LNG supply agreement with South Korea's Hyundai Chemical

By America Hernandez

TotalEnergies, a French oil giant, announced on Tuesday that it had signed an agreement with HD Hyundai Chemical, a South Korean company, to supply liquefied gas from 2027-2033.

Total has now signed six LNG contracts this year. Total will deliver 4.65 million tonnes of LNG to China, Turkey and Singapore by the middle of 2030s.

Gas that will supply an industrial site of Hyundai Chemical in South Korea will be partially indexed to Brent crude oil prices and partially to Henry Hub, US natural gas benchmark.

In a press release, Gregory Joffroy, Senior Vice President of LNG at TotalEnergies said that the agreement would allow them to secure long-term gas sales in Asia while reducing their exposure to spot gas prices.

Oil majors increasingly supply LNG to Asia, and to developing nations. Demand is expected to increase as these countries move from coal to more environmentally friendly natural gas.

TotalEnergies, the third-largest LNG player in the world, hopes to grow its gas sales by 3% per year to reach 50% of its total sales before 2030. (Reporting and editing by Susan Fenton; America Hernandez)

(source: Reuters)