TotalEnergies signs agreement to supply cargoes to Singapore-based Sembcorp Fuels for bunkering hub
TotalEnergies has signed a liquefied natural gas sale and purchase agreement to supply Sembcorp Fuels, a wholly owned subsidiary of Singapore-based Sembcorp Industries.
The deal entails the delivery of up to 800,000 tonnes of LNG for a duration of 16 years, commencing in 2027.
“The LNG will be sourced from TotalEnergies’ global portfolio. This new agreement adds to the companies’ current SPA, which runs until 2029,” the French major explained.
“By supplying this additional LNG supply to Singapore, TotalEnergies is contributing to the country’s energy security and to its decarbonization goals,” said TotalEnergies.
“This deal also reflects TotalEnergies’ commitment to supporting its customers in their transition to greater sustainability,” it added.
TotalEnergies is the world’s third-largest LNG player with a market share of around 12 percent and a global portfolio of about 50 MTPA with interests in export facilities from Africa to Australia.
Qatar deals
QatarEnergy is also a key supplier to TotalEnergies and in 2023 two long-term LNG SPAs were signed to supply of up to 3.5 MTPA of LNG from Qatar to France.
Under the Qatar agreements, LNG will be delivered ex-ship to the Fos Cavaou LNG receiving terminal located west of Marseilles.
Those deliveries are expected to start in 2026 for a term of 27 years.
TotalEnergies has gas interests in two of Qatar’s expansion joint ventures, the North Field East (NFE) and the North Field South (NFS) projects.
TotalEnergies recently reported declines in annual and quarterly net profits as commodity prices plummeted compared with the previous year while the French major sold over 44 million tonnes of LNG and opened the Le Havre floating LNG regasification terminal in France while being further boosted by progress in other oil and gas projects.
TotalEnergies posted a 35 percent drop in adjusted net operating income for all of 2023 to $25.10 billion from $38.47Bln in 2022.
For full-year 2023, hydrocarbon production for LNG was up 9 percent compared with 2022 due to increased supply to Nigeria LNG in West Africa, higher availability of Ichthys LNG in the Northern Territory of Australia and from the Hammerfest LNG plant in Norway.
