TotalEnergies Inks Long-Term LNG Sale Contract with Korean Firm Hanwha Energy

French energy major TotalEnergies has entered into a Sale and Purchase Agreement (SPA) with Korea’s Hanwha Energy Corporation for the supply of 600,000 metric tons of liquefied natural gas (LNG) per year for over 15 years, beginning from 2024.

Commenting on the deal, Stéphane Michel, President Gas, Renewables & Power at TotalEnergies, said “we are pleased to extend our long-standing cooperation with Hanwha, with whom we are already partnering on the Daesan petrochemical site, and in the United States for the development of 1.6 GW of renewables. With this new contract, TotalEnergies increases its natural gas shipments to South Korea, the world’s third largest importer of LNG in 2021. Our Company is keen to support the country’s switch away from coal for power generation, with both LNG supplies and renewables projects, such as our significant “Bada” 2 GW offshore wind project.”

Low-carbon LNG major will supply LNG from its global LNG portfolio to the Tongyeong regasification terminal in South Korea, and then used to supply Hanwha & HDC’s greenfield 1 GW power plant currently under construction next to the terminal.

“It is significant that we have secured business stability by signing a long-term contract with our long-lasting partner TotalEnergies, even though the volatility of the LNG market has increased more than ever due to the recent unstable international situation. It will serve as a great foundation for our Tongyeong project, and I think the success of the Tongyeong project will have a great impact on our future LNG businesses. Eventually in the long term, the company will grow steadily with a business portfolio of solar power, ESS, and LNG,” said Jung In Sub, Chief Executive Officer of Hanwha Energy Corporation.

The company enjoys an integrated position across the LNG value chain, including production, transportation, trading, and LNG bunkering. Its ambition is to increase the share of natural gas in its sales mix to 50 per cent by 2030, reduce the gas value chain’s carbon emissions, eliminate methane emissions, and work with local partners to promote the transition from coal to natural gas.