Total and CNOOC have signed an amendment to their existing LNG sale and purchase agreement (SPA) to further strengthen their cooperation in the LNG business.
The partners have increased the contract volume from 1 million tons per annum (Mtpa) to 1.5 Mtpa of LNG, sourced from Total’s global LNG portfolio, and have extended the term of contract to 20 years.
The initial long-term LNG SPA was signed in 2008, with an annual contract volume of 1 Mtpa for a period of 15 years.
“We are delighted to strengthen our partnership with CNOOC to expand our presence in the Chinese LNG market, which grew by 50 per cent over the first half of 2018 and will continue to drive the increase of LNG demand over the next decade,” commented Philippe Sauquet, President Gas, Renewables and Power.
With a portfolio of 15.6 million tons managed in 2017, Total is one of the world’s leading players in the sector, with solid and diversified positions across the LNG value chain.
Total says that LNG development is a key element of its strategy, which looks to strengthening its upstream positions in the major production regions with projects in Russia, the Middle East, the U.S. and Australasia, as well as its downstream positions in all markets.