This article was initially published on Rigzone.com
Total and Guanghui International Natural Gas Trading Co Ltd have signed a long-term sale and purchase agreement for the supply of 0.7 million tons per year of liquefied natural gas (LNG).
The agreement is for a period of ten years. The gas will be delivered to Guanghui’s regasification terminal in Qidong, Jiangsu Province, from Total’s global LNG portfolio.
“We are delighted to start a long-term relationship with Guanghui, an increasingly successful LNG market player in China with clear ambitions for growth,” Laurent Vivier, senior vice-president of gas at Total, said in a company statement.
“This new supply contract is in line with Total’s strategy to expand its presence in the Chinese LNG market, which grew by over 41 percent in 2018 and will continue to be a key driver of the LNG markets growth in the future,” he added.
Total is the second-largest private global LNG player among the majors, according to the company’s website, which highlights that Total will have an overall LNG portfolio of around 40 million tons per annum by 2020. The company managed 21.8 million tons of LNG in 2018.
Guanghui International Natural Gas Trading Co Ltd is a subsidiary of Guanghui Energy Co Ltd, which is an integrated energy company based in Xinjiang, China.
This week, Total and Tellurian signed a series of agreements strengthening the partnership between the two companies to develop the Driftwood LNG project in Louisiana, USA.
Last month, Total signed definitive agreements with Novatek for the acquisition of a direct ten percent interest in Arctic LNG 2, a development led by Novatek on the Gydan Peninsula, Russia.