In line with its strategic plan to grow its long-term liquefied natural gas (LNG) sales, TotalEnergies had just early this week announced the signing of a Heads of Agreement (HoA) with HD Hyundai Chemical for the delivery of 200,000 tons of LNG per year for 7 years starting from 2027. It is expected to terminate in 2033.
It is an exciting development according to the French major which also said that the engagement has the capacity to strengthen the company’s long-term position in South Korea, which currently is the world’s third-largest LNG importing country. Noting that LNG is serving as a true transition energy in Asia, while mitigating the intermittency of renewable energy sources and reducing emissions when it replaces coal in electricity generation.
“We are pleased with this agreement with HD Hyundai Chemical, which will supply natural gas to one of their industrial sites. This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices,” says Gregory Joffroy, Senior Vice President, LNG at TotalEnergies.