Cleaner Fossil Energy to Meet Increasing Demand
Gas is set to play an increasingly important role in the global energy mix, particularly because it can reduce carbon emissions when used as a substitute for coal in power generation. As the world’s fourth-largest publicly-traded gas producer and the second-largest liquefied natural gas operator, Total has a strong diversified position and is active in most of the major LNG producing regions. With the increasing demand for LNG in China, we have become one of the largest suppliers of LNG that is delivered under long-term contracts and spot sales with our local partners.
First delivery of Yemen LNG cargo to China.
Asia has become the leading consumer of LNG in the world
Facing the Future Challenge, LNG is an Efficient Solution for China
At the core of China’s energy future is meeting the twin challenges of increasing energy demand and responding to growing environmental problems. There is no doubt that LNG can and will play a role as natural gas emits half the quantity of greenhouse gases of coal when consumed for power generation. Indeed, natural gas demand has been rising at 3% per year for the past 30 years. Asia is the leading consumer of LNG in the world, China's gas demand grew at 17.7% year on year in 2018. The country's gas and LNG imports surged in 2018, growing 31.9%. The availability of technology has made it feasible to transport gas over long distances. This technology and transport feasibility has led to greater supplier diversity and increased access for China that is already being put to use throughout the energy ecosystem.
Growth With Local Partners
A feature of the LNG industry is the huge, complex, and capital-intensive nature of the projects. The implementing of an LNG chain can cost billions of dollars and requires end-to-end expertise in diverse fields. All of these factors make it absolutely necessary to develop strong partnerships within the industry and this is why we are so proud of the agreements that we have established with Chinese NOCs1. Total has supplied 5 million tons of LNG already delivered between 2010 and 2014. In 2014, Total and CNOOC2 initiated a framework for an additional supply of 1 million tons per year of LNG as well as further cooperation throughout the LNG Value Chain. In March 2015, Total delivered the first cargo of 147,000 cubic meters to the CNOOC2 Tianjin terminal. Total has accumulatively supplied the China market over 7.6 Mt of LNG since 2010 up to the end of 2017, account for 5% of the market share.
Total LNG in China:
2019 - Total and Guanghui signed a long-term SPA.
2018 - Total and CNOOC signed an amendment to their existing SPA for LNG supply, increased the contract volume to 1.5 million tons/year and extended the contract to 20 years.
2016 - Total signed the Supply and Purchase Agreement for LNG supply to ENN.
2012 - Total signed the Gas Sales Agreement for natural gas of the South Sulige Block.
2011 - Total signed a master agreement to sell LNG to CNPC3.
2010 - Total began supplying CNOOC2 with up to 1 million tons in annual sales.
2008 - Delivered first spot LNG cargo to CNOOC’s2 Dapeng terminal.
1 NOC: National Oil Company
2 CNOOC: China National Offshore Oil Corp.,
3 CNPC: China National Petroleum Corp.,