TotalEnergies SE (TTE) has strengthened its commitment to the Asian energy market by extending its sales and purchase agreement (SPA) with China’s CNOOC for an additional five years. This deal ensures the continued delivery of 1.25 million tons of liquefied natural gas (LNG) annually to China, extending the contract until 2034.
Gregory Joffroy, Senior Vice President, LNG at TotalEnergies, highlighted the significance of the partnership, stating, “We are pleased to strengthen our ties with CNOOC, a key partner for the Company in the world’s largest LNG importing country. This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices.”
The extension of the CNOOC deal follows a series of strategic moves by TotalEnergies to expand its global energy footprint. Earlier this week, the company signed a 10-year agreement with BOTAŞ, Turkey’s state-owned energy company, to deliver 1.1 million tons of LNG annually starting in 2027. This agreement will secure long-term sales in Turkey and also help mitigate exposure to volatile spot gas prices.
Furthermore, TotalEnergies has entered into a 50/50 joint venture with Adani Green, a leading renewable energy company in India, for a 1,150 MW solar project in Gujarat. This investment of $444 million signifies TotalEnergies’ commitment to expanding its renewable energy portfolio and solidifying its position in the rapidly growing Indian renewable energy market.
Investors seeking exposure to TotalEnergies can consider investment vehicles such as the Miller Value Partners Appreciation ETF (MVPA) and the Octane All-Cap Value Energy ETF (OCTA), which include TTE in their portfolios.
The news of these strategic agreements has been well-received by the market, with TTE shares rising 2.65% to $69.84 in premarket trading on Thursday.
