TotalEnergies, Korea's Hanwha Energy clinch LNG deal
Daegu, South Korea – French major TotalEnergies said May 24 it had signed a sales and purchase agreement (SPA) with Korea’s Hanwha Energy for the supply of 600,000 mt/yr of LNG for 15 years, beginning in 2024.
The SPA deal was announced at the International Gas Union’s World Gas Conference 2022 (WGC2022), which is being held in Daegu May 24-27.
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The LNG will be sourced from TotalEnergies’ global LNG portfolio, delivered to the Tongyeong regasification terminal in South Korea and used to supply Hanwha Energy and HDC’s greenfield 1 GW power plant under construction adjacent to the regas terminal.
“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 US for the development of 1.6 GW of renewables,” said Stephane Michel, president gas, renewables and power at TotalEnergies. “With this new contract, TotalEnergies increases its natural gas shipments to South Korea, the world’s third largest importer of LNG in 2021.”
TotalEnergies is supporting South Korea’s move away from coal for power generation, not only with increased LNG shipments but also in renewable projects, including the 2 GW Bada offshore wind development, Michel added.
“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,” Hanwha Energy CEO Jung In Sub said. “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.”
Commercial terms of the SPA were not released.