Total SA and China National Offshore Oil Corp. (CNOOC) have reached an LNG cooperation agreement that will expand upon the companies’ existing 15-year contract in which Total has been supplying China with as much as 1 million tonnes/year of LNG since 2010.
The companies have agreed to a price review concerning the existing supply, set a framework for an additional LNG supply of 1 million tpy, and further cooperation throughout the LNG value chain.
Total already supplies more than 8% of the Chinese market, delivering 5 million tonnes of LNG during 2010-14. The company said it plans to respond to China’s growing demand by taking advantage of additional supply sources in Australia, Russia, and the US, along with existing Middle East and African sources.
CNOOC is the third-largest LNG importer in the world with 13 million tonnes of LNG imported in 2013. CNOOC currently operates six LNG receiving terminals in Guangdong, Fujian, Zhejiang, Shanghai, and Tianjin, with additional terminals under construction.