TotalEnergies SE (TTE) shares are on the rise in pre-market trading Tuesday, fueled by a new long-term agreement. The energy giant has inked a Heads of Agreement (HoA) with HD Hyundai Chemical to supply 200,000 tons of liquefied natural gas (LNG) per year for seven years, starting in 2027. This deal marks a significant step forward for TotalEnergies’ strategy to expand its long-term LNG sales and solidify its presence in the South Korean market, the world’s third-largest importer of LNG.
The agreement is structured with a pricing mechanism indexed to both Brent crude oil and the Henry Hub natural gas benchmark, ensuring flexibility and responsiveness to market dynamics. Gregory Joffroy, Senior Vice President, LNG at TotalEnergies, expressed enthusiasm about the deal, highlighting its contribution to securing long-term sales in Asia and reducing reliance on volatile spot market prices. “We are pleased with this agreement with HD Hyundai Chemical, which will supply natural gas to one of their industrial sites. This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices,” Joffroy stated.
This latest agreement follows TotalEnergies’ recent string of strategic partnerships in the energy sector. Just yesterday, the company signed a 10-year agreement to supply Air France-KLM with 1.5 million tons of sustainable aviation fuel (SAF) through 2035. Last week, TotalEnergies extended its sales and purchase agreement (SPA) with CNOOC by an additional five years.
For investors seeking exposure to TotalEnergies, the Advisor Managed Portfolios Miller Value Partners Appreciation ETF (MVPA) and Octane All-Cap Value Energy ETF (OCTA) offer attractive avenues.
As of the last check Tuesday, TTE shares are trading up 0.32% at $69.39 in pre-market. This positive momentum reflects the market’s confidence in TotalEnergies’ strategic direction and its commitment to securing long-term energy solutions.
