TotalEnergies pens new LNG supply agreement with Sembcorp

French energy major TotalEnergies has signed a new LNG supply deal with Sembcorp Fuels, a wholly owned subsidiary of Singapore-based Sembcorp Industries, it said on February 29.

The agreement entails the delivery of up to 0.8mn tonnes of LNG/year for 16 years, starting in 2027. This additional supply builds upon the companies current sale and purchase agreement (SPA), which is in effect until 2029. The LNG for this agreement will be sourced from TotalEnergies' global portfolio.

“By supplying this additional LNG supply to Singapore, TotalEnergies is contributing to the country’s energy security and to its decarbonisation goals,” TotalEnergies said.

TotalEnergies said it is the world’s third largest LNG player with a market share of around 12% and a global portfolio of about 50mn tonnes/year thanks to its interests in liquefaction plants in all geographies. The company aims to increase its LNG production and long-term purchases by 50% by 2030. 

Sembcorp was awarded the licence to import LNG in 2021.