Cleaner Fossil Energy to Meet Increasing Demand
Gas is set to play an increasingly important role in the global energy mix, particularly because it can reduce carbon emissions when used as a substitute for coal in power generation. As the world’s fourth-largest publicly-traded gas producer and the second-largest liquefied natural gas operator, Total have a strong diversified position and are active in most of the major LNG producing regions. With the increasing demand of LNG in China, we have become one of the largest suppliers of LNG that is delivered under long-term contracts and spot sales with our local partners.
First delivery of Yemen LNG cargo to China.
Asia has become the leading consumer of LNG in the world
Facing the Future Challenge, LNG is an Efficient Solution for China
At the core of China’s energy future is meeting the twin challenges of increasing energy demand and responding to growing environmental problems. There is no doubt that LNG can and will play a role as natural gas emits half the quantity of greenhouse gases of coal when consumed for power generation. Indeed, natural gas demand has been rising at 3% per year for the past 30 years. Asia is the leading consumer of LNG in the world and the annual growth of LNG markets in China is 20%. The availability of technology has made it feasible to transport gas over long distances. This technology and transport feasibility has led to greater supplier diversity and increased access for China that is already being put to use throughout the energy ecosystem.
Growth With Local Partners
A feature of the LNG industry is the huge, complex, and capital-intensive nature of the projects. The implementing of an LNG chain can cost billions of dollars and requires end-to-end expertise in diverse fields. All of these factors make it absolutely necessary to develop strong partnerships within the industry and this is why we are so proud of the agreements that we have established with Chinese NOCs1. Total has supplied more than 8% of the Chinese LNG imports on average, with 5 million tons of LNG already delivered between 2010 and 2014. In 2014, Total and CNOOC2 initiated a framework for an additional supply of 1 million tons per year of LNG as well as further cooperation throughout the LNG value Chain. In March 2015, Total deliverd the first cargo of 147,000 cubic meters to the CNOOC2 Tianjin terminal.
Total LNG in China:
2014 – Total agrees to provide additional 1 million tons per year of LNG to CNOOC2
2012 - Total signed the Gas Sales Agreement for natural gas of the South Sulige Block.
2011 - Total signed a master agreement to sell LNG to CNPC3.
2010 - Total began supplying CNOOC2 with up to 1 million tons in annual sales.
2008 - Delivered first spot LNG cargo to CNOOC’s2 Dapeng terminal.
1 NOC: National Oil Company
2 CNOOC: China National Offshore Oil Corp.,
3 CNPC: China National Petroleum Corp.,