TotalEnergies to supply LNG to HD Hyundai Chemical in South Korea
In line with its strategy to grow its long-term liquefied natural gas (LNG) sales, French energy firm TotalEnergies announced the signing of a Heads of Agreement (HoA) with HD Hyundai Chemical for the delivery of 200,000 tonnes/year of LNG for seven years starting from 2027.
Thanks to this agreement, with prices indexed both to Brent and Henry Hub, TotalEnergies strengthens its long-term position in South Korea, the world’s third-largest LNG importing country. In Asia, LNG serves as a true transition energy, mitigating the intermittency of renewable energy sources and reducing emissions when it replaces coal in electricity generation.
“We are pleased with this agreement with HD Hyundai Chemical, which will supply natural gas to one of their industrial sites. This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices,” said Gregory Joffroy, Senior Vice President, LNG at TotalEnergies.
TotalEnergies is the world’s third largest LNG player with a global portfolio of 44 million tonnes/year in 2023 thanks to its interests in liquefaction plants in all geographies.
The company benefits from an integrated position across the LNG value chain, including production, transportation, access to more than 20 million tonnes/year of regasification capacity in Europe, trading, and LNG bunkering.
TotalEnergies’ ambition is to increase the share of natural gas in its sales mix to close to 50% by 2030, to reduce carbon emissions and eliminate methane emissions associated with the gas value chain, and to work with local partners to promote the transition from coal to natural gas.