TotalEnergies seals LNG supply deal with South Korea's Hyundai Chemical

The fuel will go to one of Hyundai Chemical’s industrial sites in South Korea, and will be indexed to Brent crude prices, as well as the US natural gas benchmark price

FRENCH oil major TotalEnergies has signed an agreement to deliver liquefied natural gas (LNG) to South Korea’s HD Hyundai Chemical from 2027 to 2033, it said on Tuesday (Sep 24).

The deal for 200,000 tonnes a year, Total’s sixth LNG contract this year, brings its new deals to about 4.7 million tonnes for delivery to China, Turkey, Singapore, India and South Korea through the mid-2030s, Reuters calculations showed.

The LNG, which will supply one of Hyundai Chemical’s industrial sites in South Korea, will be partly indexed to Brent crude prices, as well as Henry Hub – the US natural gas benchmark price.

“This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices,” TotalEnergies’ senior vice-president for LNG Gregory Joffroy said.

As countries in the European Union aim to cut their fossil fuel consumption in coming years under agreed climate commitments, oil majors are increasingly turning to supply LNG to Asia and developing nations, where demand is slated to rise, as they switch from coal to natural gas.

TotalEnergies is the third-largest global LNG player, and aims to increase its LNG sales 3 per cent annually to have the fuel reach half its total sales by 2030. REUTERS