GROW WITH CHINESE PARTNERS TO MEET CHANGING MARKET

Natural gas forms a key business of TotalEnergies. This is illustrated by our strong commitment to raise the gas share in our portfolio as an important means of reducing the carbon intensity of our energy products. As the world’s third-largest liquefied natural gas operator, TotalEnergies has contracted more than 5 Mtpa of LNG supply to China, including:

• In 2021, TotalEnergies and Shenergy Group signed binding agreements for the supply of up to 1.4 Mtpa of LNG from TotalEnergies, as well as the creation of a joint venture to expand LNG marketing in China.
• In 2020, TotalEnergies and CNOOC reached the first LNG purchase deal on the newly launched Shanghai Petroleum and Natural Gas Exchange online platform for online international LNG trade.
• In 2019, TotalEnergies signed a LNG SPA with Guanghui Energy to ship 0.7 Mtpa of LNG to China for the next 10 years.
• In 2018, TotalEnergies and CNOOC signed an amendment to the existing SPA for LNG supply to China. The partners increased the contract volume of LNG from 1 Mtpa to 1.5 Mtpa, and extended the term of contract from 15 years to 20 years.
• In 2016, TotalEnergies signed an agreement with ENN LNG Trading to deliver 0.5 Mtpa of LNG for the next 10 years.

As China proceeds with reforming its mid-stream natural gas infrastructure, one of the goals is to open the market and ensure fair access to all third parties, a shift that will bring more abundant opportunities to downstream players in natural gas. Informed by this knowledge, on top of actively pursuing LNG import projects and contracts with China, TotalEnergies also has plans to carry out more midstream investments and partnerships to foster closer business ties with China.

Long-term Cooperation with Chinese NOC

In 2008, TotalEnergies and CNOOC signed a Sale and Purchase Agreement (SPA). According to the SPA, TotalEnergies had to deliver 1 million tons of LNG per annum to CNOOC. In October,2018, an amendment was signed by both parties to extend the contract from 15 years to 20 years and to increase the annual LNG supply 1.5 Mtpa. This enhanced partnership with CNOOC further improves TotalEnergies’ presence and our standing in the Chinese LNG market. Till the end of 2019, TotalEnergies has supplied more than 10Mt of LNG under the long-term contract.

Digital economy has become the new engine to boost the world development. Under the trend of industrial digitalization, TotalEnergies and CNOOC reached the first deal on the new online international LNG trading platform, which was established by Shanghai Petroleum and Natural Gas Exchange (SHPGX). Together with our Chinese partners, TotalEnergies contributes to accelerating the digitalization process of China and global LNG industry. As a LNG supplier, we provide LNG products to China market through the local partners or our global trading center. Meanwhile, we are seeking new opportunities in LNG downstream market through cooperating with local LNG companies.