TotalEnergies reaches long-term LNG supply agreement with Jiangsu Guoxin Group
TotalEnergies has signed a Heads of Agreement (HoA) with China’s Jiangsu Guoxin Group for the proposed supply of liquefied natural gas (LNG), expanding its long-term commercial arrangements in the Chinese energy market.
The agreement covers 900,000 tonnes of LNG annually over a 15-year period, with deliveries expected to begin in 2028, subject to the finalisation of definitive Sale and Purchase Agreements (SPAs). If completed on the proposed terms, the arrangement would represent approximately 13.5 million tonnes of LNG over its full duration.
The planned volumes will be delivered to Jiangsu Guoxin Group’s new LNG terminal in Rudong, Jiangsu Province, where they will support city gas distribution and flexible electricity generation. The supply arrangement is intended to help meet periods of peak energy demand and strengthen regional gas availability.
Jiangsu is China’s second-largest province by gross domestic product and natural gas consumption, according to the announcement. The proposed agreement would further expand TotalEnergies’ long-term LNG sales portfolio in China, a major market for imported natural gas.
Gregory Joffroy, Senior Vice President, LNG at TotalEnergies, highlighted the company’s integrated LNG portfolio and its ability to maintain deliveries during market disruptions.
“This agreement also highlights the role natural gas can play in the energy transition by supporting industrial development and providing greater flexibility for power generation in high-growth provinces such as Jiangsu,” said Gregory Joffroy, Senior Vice President, LNG at TotalEnergies.
For Jiangsu Guoxin Group, the proposed supply arrangement is intended to improve gas supply security and support the utilisation of its LNG infrastructure. The company also expects the cooperation to strengthen its ability to respond to changes in regional energy demand.
“The signing of this agreement will effectively strengthen Jiangsu Guoxin Group’s gas supply security and improve the operational efficiency of its infrastructure,” said Zhang Wenxiang, Deputy General Manager of Jiangsu Guoxin Group.
The companies did not disclose the commercial value of the proposed arrangement, pricing terms or the specific LNG production facilities that would supply the volumes.
The next contractual step will be the finalisation of the SPAs, which remains a condition for the planned long-term deliveries to proceed.
