Total to partner on LNG with China’s CNOOC
Total signed an LNG cooperation agreement between it and China National Offshore Oil Corporation (CNOOC), seeking to strengthen the partnership between the two companies.
Under the terms of an existing 15-year contract, Total has been supplying China with up to 1 million tpy of LNG since 2010.
In addition to agreeing on a price review regarding this existing supply, the parties also set a framework for an additional supply of 1 million tpy of LNG as well as further cooperation throughout the LNG value chain.
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 is expected to benefit from additional supply sources in Australia, Russia and the US, complementing existing Middle East and African sources, in order to respond to Chinas growing LNG demand.
As a world leader in LNG, Total seeks to strengthen its position in Asias growing LNG markets, where China is among the largest players with 20% annual growth,"said Yves-Louis Darricarrère, president of Total's upstream business. "This new agreement allows us to expand our LNG supply and reinforces our cooperation with Chinese companies."
CNOOC is a pioneer of Chinas LNG industry and the third largest LNG importer in the world with 13 million tons of LNG imported in 2013. Currently, CNOOC operates 6 LNG receiving terminals in Guangdong, Fujian, Zhejiang, Shanghai and Tianjin with further terminals under construction.
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