Cooperate With Local Private Players to Help China Energy Transition

As a responsible energy major, TotalEnergies is at the forefront in tackling climate issues as a business strategy. Natural gas is a cornerstone of our energy mix and our strategy. As the fossil fuel with the least carbon emissions, it offers an excellent alternative to coal for power generation and can serve as a flexible, inexpensive partner to intermittent, seasonal renewable energies.

In TotalEnergies’ view, China stands as a key LNG market as the world’s second-largest LNG importer. China is taking active steps in reducing its reliance on coal and vigorously promoting the role of natural gas and renewables. China’s goal is to increase the gas share to 15% of total energy by 2030 from 8% in 2018. In renewables, China has already become the world’s largest producer and consumer market with leading positions in solar, wind, hydropower, electric cars, and batteries.

To exploit the tremendous potential of the Chinese market, TotalEnergies has built a strong China LNG team to develop new partnership opportunities and expand new LNG sales outlets with local companies.

In 2016, TotalEnergies signed a 10-year LNG supply deal with ENN, with a contract quantity of 0.5 Mpta, making TotalEnergies the first international oil company to sign a long-term contract with a private Chinese LNG player. On February 25, 2019, TotalEnergies delivered its first shipment of LNG to ENN, one of China’s largest private gas distributors.

In 2019, we also signed another long-term LNG supply contract for 0.7Mpta with Guanghui, another Chinese private LNG and gas distributor, showing our commitment to support China’s private players and to promote more environment friendly solutions.

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