South Korea: TotalEnergies Signs LNG Long-Term Sale Contract with Hanwha Corporation
Daegu, May 24, 2022 – Against the backdrop of World Gas Conference 2022, TotalEnergies announces the signing of a Sale and Purchase Agreement (SPA) with the Korea’s Hanwha Energy Corporation for the supply of 600,000 metric tons of liquefied natural gas (LNG) per year 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 United States 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, Chief Executive Officer of Hanwha Energy Corporation.