A global quest for cleaner energy source has recently gained major momentum amid fizzling out of fossil fuel pursuit in the global energy space and massive development of modern innovative renewable technologies across the globe in course of cushioning greenhouse emission.

Despite this global renewable energy pursuit, the demand for LNG as alternative for of cleaner energy source has continued to surge in world energy market. TotalEnergies, BOTAŞ, Woodside And Jera have joined other world energy leaders in a strategic move to grow global liquefied natural gas (LNG) sales in a landmark signing of a Long term LNG sales Agreement.

TotalEnergies, BOTAŞ Agreement

TotalEnergies announced the signing of a Heads of Agreement (HoA) with BOTAŞ for the delivery of 1.1 million tons of LNG per year for ten years starting from 2027.

This agreement allows TotalEnergies to strengthen a long-term presence in the Turkish LNG market. Natural gas plays a crucial role as a transition energy, addressing the intermittency of renewable energy sources and reducing emissions by replacing coal in electricity generation.

“We are pleased to initiate a new long-term collaboration with BOTAŞ, a key partner for the Company in Türkiye. This agreement enables us to secure long-term sales and reduce our exposure to spot market gas price fluctuations,” said Gregory Joffroy, Senior Vice President, LNG at TotalEnergies.

TotalEnergies is the world’s third largest LNG player with a global portfolio of 44 Mt/y in 2023 thanks to its interests in liquefaction plants in all geographies. The Company benefits from an integrated position across the LNG value chain, including production, transportation, access to more than 20 Mt/y of regasification capacity in Europe, trading, and LNG bunkering. TotalEnergies’ ambition is to increase the share of natural gas in its sales mix to close to 50% by 2030, to reduce carbon emissions and eliminate methane emissions associated with the gas value chain, and to work with local partners to promote the transition from coal to natural gas.

Woodside And Jera LNG Agreement

Woodside signed a sale and purchase agreement (SPA) with JERA for the long-term supply of liquefied natural gas (LNG) to Japan. Under the SPA, Woodside will supply approximately 0.4 million tonnes (six cargoes) of LNG per year over 10 years on a delivered basis, commencing in April 2026.

LNG delivered to JERA under the SPA will be sourced from volumes across Woodside’s global portfolio. The execution follows the announcement in February whereby Woodside reached agreement for the sale to JERA of a 15.1% non-operating participating interest in the Scarborough Joint Venture.

Woodside Executive Vice President and Chief Commercial Officer Mark Abbotsford said the execution of the SPA strengthened the commitment to explore business opportunities alongside JERA. “This LNG offtake agreement is Woodside’s first long-term sale to JERA from our global portfolio and delivers on one of the core elements of our strategic relationship outlined earlier this year.

“We understand the demand from our customers in the Asian region for reliable energy. LNG continues to be an important energy source for Japan, one which can support the country’s efforts to decarbonise.” Woodside expects the Scarborough equity sale to JERA to be completed before the end of 2024.