Total Extends Cnooc LNG Sales Contract

French Total and Cnooc Gas & Power Trading & Marketing have signed an amendment to their existing sale and purchase agreement (SPA) for liquefied natural gas, Total said October 22. The partners have increased the contract volume from 1mn mt/year to 1.5mn mt/yr, sourced from Total’s global LNG portfolio, and have extended the term of contract to 20 years. NGW reported the Chinese comment on the deal October 18.

The initial long-term LNG SPA was signed in 2008, with an annual contract volume of 1mn mt/yr, for a period of 15 years.

Total's president for gas, renewables and power, Philippe Sauquet, said that Total was "delighted" to strengthen the partnership with Cnooc and expand its presence in the Chinese LNG market, which he added "grew by 50% over the first half of 2018 and will continue to drive the increase of LNG demand over the next decade". 

Total had a portfolio of 15.6mn mt/yr under management in 2017, which is growing as more trains come on line at Yamal LNG in the far north of Russia and existing capacity in Qatar, Nigeria, Norway, Oman, the United Arab Emirates, the US, Australia, Angola and Yemen, the latter being out of commission owing to war.