TotalEnergies and Hanwha Energy Corporation sign long-term LNG agreement

French energy major TotalEnergies on Tuesday announced the signing of an agreement with 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 company said in a statement that 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,” Stéphane Michel, President Gas, Renewables & Power at TotalEnergies, said in a statement.

“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,” Michel added.

According to Jung In Sub, Chief Executive Officer of Hanwha Energy Corporation, the agreement has helped secure business stability even though the volatility of the LNG market remains at its peak 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,” he said.