Wedoany.com Report-Sept. 26, TotalEnergies, a major French energy company, has signed a multi-year agreement to supply liquefied natural gas (LNG) to HD Hyundai Chemical in South Korea. The deal, formalized through a Heads of Agreement (HoA), commits TotalEnergies to deliver 200,000 tons of LNG annually for seven years, from 2027 to 2033. Pricing will be linked to both Brent crude and Henry Hub indices, ensuring flexibility in the global energy market.

This agreement strengthens TotalEnergies’ presence in South Korea, the world’s third-largest LNG-importing nation. The company recently secured another LNG supply contract with Korea Gas Corporation (KOGAS), further solidifying its market position. LNG is recognized as a key energy source in Asia, supporting the shift from coal to cleaner alternatives in power generation and addressing the intermittency of renewable energy sources.

“We are pleased with this agreement with HD Hyundai Chemical, which will supply natural gas to one of their industrial sites,” said Gregory Joffroy, Senior Vice President, LNG at TotalEnergies. “This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices.”

TotalEnergies aims to increase the share of natural gas in its sales mix to approximately 50% by 2030, while also focusing on reducing carbon emissions and eliminating methane emissions across its gas value chain. The company is collaborating with local partners to promote the transition from coal to natural gas, contributing to lower emissions in electricity production.

The company’s board of directors recently reaffirmed its strategy, emphasizing sustainable growth through two core areas: oil and gas, with a focus on LNG, and integrated power. To adapt to economic and market uncertainties, TotalEnergies has adjusted its share buyback program, maintaining financial flexibility while pursuing its growth objectives. Additionally, the company is expanding its oil and gas portfolio, including the acquisition of four offshore exploration permits in Liberia.

This LNG deal with HD Hyundai Chemical underscores TotalEnergies’ commitment to meeting Asia’s growing energy demands sustainably. By securing long-term contracts and investing in cleaner energy solutions, the company is positioning itself as a leader in the global energy transition while supporting industrial partners like HD Hyundai Chemical in achieving their operational goals.