Total and China's CNOOC Gas & Power Trading & Marketing Limited signed an amendment to increase the contract term and liquefied natural gas (LNG) supply volume in their existing sale and purchase agreement (SPA), Total said Monday.
The partners increased the LNG contract volume from 1 million tons per annum (Mtpa) to 1.5 Mtpa, sourced from Total's global LNG portfolio, and extended the term of contract to 20 years, according to a statement from the company.
The initial long-term LNG SPA was signed in 2008 for a period of 15 years, it added.
'We are delighted to strengthen our partnership with CNOOC to expand our presence in the Chinese LNG market, which grew by 50 percent over the first half of 2018 and will continue to drive the increase of LNG demand over the next decade,' said Philippe Sauquet, president of Gas, Renewables and Power.
According to the statement, 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.
Through its stakes in liquefaction plants located in Qatar, Nigeria, Russia, Norway, Oman, the United Arab Emirates, the U.S., Australia, Angola and Yemen, the group sells LNG in all global markets.
'Following the acquisition of Engie's LNG business, Total became the second-largest private global LNG player among the majors, with an overall LNG portfolio of around 40 Mtpa by 2020 and a worldwide market share of 10 percent,' the statement added.
By Hale Turkes
Anadolu Agency
energy@aa.com.tr