September 25, 2024 [Storage Terminals Magazine]- TotalEnergies has announced the signing of a Heads of Agreement with HD Hyundai Chemical, aimed at delivering 200,000 tonnes of liquefied natural gas annually over a seven-year period starting in 2027. This agreement aligns with TotalEnergies’ strategy to expand its long-term LNG sales.
Under the terms of the agreement, pricing will be indexed to both Brent crude oil and Henry Hub natural gas, enabling TotalEnergies to solidify its long-term presence in South Korea, which ranks as the third-largest importer of LNG globally. In the broader context of Asia, LNG plays a crucial role as a transition fuel, helping to mitigate the intermittency of renewable energy sources and reduce carbon emissions, particularly when replacing coal in electricity generation.
Gregory Joffroy, senior vice president of LNG at TotalEnergies, expressed satisfaction with the agreement, noting its importance in supplying natural gas to one of HD Hyundai Chemical’s industrial sites. Joffroy highlighted that the deal supports TotalEnergies’ goal of securing long-term sales in the Asian market while reducing exposure to the volatility of spot market gas prices.
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