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Total and CNOOC strengthen LNG partnership

27th March 2014

The Chinese firm will be supplied with a massive increase in LNG to power its booming levels of production

CNOOC TOTAL LNG contract
CNOOC imports massive amount of LNG to maintain production

Total and CNOOC have strengthened their LNG buying partnership with a review of pricing terms and doubling supply to 2 million tons per year.

Total has been supplying China with up to 1 million tons per year of LNG since 2010 in the current 15-year contract. The parties have set a framework for an additional supply of 1 million tons per year of LNG as well as further cooperation throughout the LNG value chain, in addition to agreeing on a price review regarding this existing supply.

“Total seeks to strengthen its position in Asia’s growing LNG markets, where China is among the largest players with 20% annual growth. This new agreement allows us to expand our LNG supply and reinforces our cooperation with Chinese companies,” said Yves-Louis Darricarrère, president of Total Upstream.

Total already supplies more than 8% of the Chinese market, with 5 million tons of LNG already delivered between 2010 and 2014. In the coming years the Group will benefit from additional supply sources in Australia, Russia and the US, complementing existing Middle East and African sources, in order to respond to China’s growing LNG demand.

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