https://www.tanksterminals.com/terminals/26052022/totalenergies-signs-lng-contract-with-hanwha-corp/

C0838, Total - Hanwha, 0.6 mtpa, 2024-2039.

Published by?Bella Weetch,?Editorial Assistant
tanks and Terminals,?Thursday, 26 May 2022 09:00

Against the backdrop of World Gas Conference 2022, TotalEnergies has announced the signing of a Sale and Purchase Agreement (SPA) with Korea’s Hanwha Energy Corp. for the supply of 600 000 tpy of LNG over 15 years, starting in 2024.

The LNG will be sourced from TotalEnergies’ global LNG portfolio, delivered to the Tongyeong regasification terminal in South Korea, and then used to supply Hanwha & HDC’s greenfield 1 GW power plant currently under construction next to the terminal.

“We are pleased to extend our long-standing cooperation with Hanwha, with whom we are already partnering on the Daesan petrochemical site, and in the US for the development of 1.6 GW of renewables. With this new contract, TotalEnergies increases its natural gas shipments to South Korea, the world’s third-largest importer of LNG in 2021. Our Company is keen to support the country’s switch away from coal for power generation, with both LNG supplies and renewables projects, such as our significant 'Bada' 2 GW offshore wind project,” said Stéphane Michel, President Gas, Renewables & Power at TotalEnergies.

“It is significant that we have secured business stability by signing a long-term contract with our long-lasting partner, TotalEnergies, even though the volatility of the LNG market has increased more than ever due to the recent unstable international situation. It will serve as a great foundation for our Tongyeong project, and I think the success of the Tongyeong project will have a great impact on our future LNG businesses. Eventually in the long term, the company will grow steadily with a business portfolio of solar power, ESS, and LNG,” said Jung In Sub, CEO of Hanwha Energy Corp.