TotalEnergies Signs LNG Supply Deal with South Korea's Hyundai Chemical
(Reuters) — French oil major TotalEnergies has signed an agreement to deliver liquefied natural gas to South Korea's HD Hyundai Chemical from 2027 to 2033, it said on Tuesday.
The deal for 200,000 metric tonnes annually (mtpa), is Total's sixth LNG contract agreed this year, bringing its new deals to 4.65 million tons for delivery to China, Turkey, Singapore, India and South Korea through the mid-2030s, according to Reuters calculations.
The gas, which will supply one of Hyundai Chemical's industrial sites in South Korea, will be partly indexed to Brent crude prices and partly to Henry Hub, the U.S. natural gas benchmark price.
"This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices," TotalEnergies' Senior Vice President for LNG Gregory Joffroy said in a statement.
As countries in the European Union aim to cut their fossil fuel consumption in coming years under agreed climate commitments, oil majors are increasingly turning to supply LNG to Asia and developing nations, where demand is slated to rise, as those countries switch from more polluting coal to natural gas.
TotalEnergies is the third largest global LNG player, and hopes to increase its gas sales 3% annually to have the fuel reach half its total sales by 2030.
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