Gas
TotalEnergies secures new LNG supply and Chinese offtake agreements
TotalEnergies has signed a five-year LNG supply agreement with ADNOC Gas and a long-term offtake arrangement with Jiangsu Guoxin Group.
Key points
- ADNOC Gas to provide up to 1.6 million tonnes of LNG to TotalEnergies starting in 2026.
- Jiangsu Guoxin Group agreed to purchase 900,000 tonnes annually over 15 years from 2028.
- Volumes for the Chinese firm will support city gas supply and flexible power generation in Jiangsu.
What happened
French energy conglomerate TotalEnergies has expanded its global liquefied natural gas portfolio through two separate transactions involving suppliers in the United Arab Emirates and buyers in China, Offshore Energy reported.
Under a five-year arrangement with ADNOC Gas, the French enterprise will receive up to 1.6 million tonnes of LNG. Deliveries under this arrangement are scheduled to commence in 2026. According to TotalEnergies, this pact reinforces its supply network by leveraging the geographic positioning of the UAE between European and Asian markets.
In addition to the supply arrangement, TotalEnergies executed a heads of agreement with China's Jiangsu Guoxin Group. This 15-year pact involves annual shipments of 900,000 tonnes, beginning in 2028, pending final execution of formal sale and purchase agreements.
Delivery and infrastructure
The cargoes designated for the Chinese buyer will arrive at the Rudong terminal. Jiangsu Guoxin Group intends to utilize these shipments for municipal gas distribution and to manage electricity generation peaks within the province. Representatives from the Chinese firm noted that the arrangement supports regional carbon mitigation strategies and reinforces supply chain resilience for state-owned energy operations.
TotalEnergies emphasized that its global portfolio maintained resilience despite recent market disruptions, ensuring consistent deliveries to international buyers.
Why it matters
Global gas market dynamics continue to influence long-term contracting strategies as major portfolio players lock in multi-year commitments. For African gas producers and international investors eyeing the energy sector, these large-scale trade flows underscore the sustained global demand for liquefied natural gas as a transitional fuel.
While Henry Hub natural gas spot prices stood at 2.63 US dollars per MMBtu on 3 November 2026, according to US Energy Information Administration figures, international transactions frequently rely on long-term indexation to manage price volatility. For African nations seeking to monetize abundant gas reserves through export terminals, observing how major suppliers secure downstream offtake in high-growth Asian provinces provides valuable context for future project financing and infrastructure development.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
3.0% of electricity in China came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
