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20/05/2019 Press release

Total Marketing & Services and POWERCHINA INTL sign a preferred supplier agreement to strengthen their B2B relationship worldwide

Beijing, May 20, 2019 - Total Marketing & Services and POWERCHINA INTERNATIONAL GROUP LIMITED (hereinafter referred to as “POWERCHINA INTL”)  signed on May 14, 2019, a B2B preferred supplier agreement to extend their existing relationship to a worldwide perimeter. Under this agreement, Total shall consider POWERCHINA INTL and its affiliates as “higher priority customers”, which may have access to privileged services, secured products supply and favorable pricings. Likewise, POWERCHINA INTL agrees to engage in purchasing processes with Total and its affiliates.

PowerChina, a global leader in energy and related infrastructure fields, and Total, a global integrated energy producer and provider, are both key players in their respective fields with a worldwide large presence. The complementary geographical footprint between the two companies will allow the development of new commercial relationships and shall open new areas for collaboration. With this strategic partnership, both companies confirm their commitment to work together, at both local and corporate levels, to address their future market and technology challenges.

Furthermore, Total intends to provide its flexible, innovative and cost effective energy solutions to support PowerChina’s international growth. This large range of solutions could include storage facilities, technical support for Total products, multiple digital tools, for example -including Optimizer-, to help Powerchina INTL reduce their total operating costs.

We are very enthusiastic about this new agreement,” said Mr DING Zhengguo, Chairman of POWERCHINA INTL. “PowerChina is the spearhead service provider for the One Belt and One Road Initiative and this agreement with Total allows us to structure a network of strategic suppliers to support our international ambition & reinforce our competitiveness with cost efficient solutions. Total is also a partner that recognizes the opportunity to collaborate across the value chain and this agreement will open new fields of collaboration in domains such as Renewable Energies or LNG.

“This agreement marks Total's willingness to support PowerChina overseas growth in the increasingly demanding construction and infrastructure industry with high standard energy solutions,” said Christian Cabrol, Senior Vice President Asia Pacific & Middle East for Total Marketing & Services. “By being proactive and customer-oriented, we have developed specific tools and services for Chinese companies and appointed dedicated teams in all common key markets worldwide. We intend to strengthen this relationship with PowerChina at all levels, to meet their challenging requirements and remain their preferred supplier.

Total currently supplies PowerChina with fuels, lubricants and services, mainly in Africa, while PowerChina is a fully integrated power infrastructure group covering the whole value chain with expertise ranging from thermal power to hydropower, power grid and renewable energies and infrastructure including design, financing, equipment manufacturing, operation and maintenance.