TotalEnergies Signs Long-Term LNG Supply Deal with HD Hyundai Chemical
TotalEnergies has reached a significant agreement with HD Hyundai Chemical for the delivery of 200,000 tons of liquefied natural gas (LNG) annually, starting from 2027. The Heads of Agreement (HoA) outlines a seven-year commitment that will see LNG supply prices indexed to both Brent crude oil and Henry Hub natural gas benchmarks.
This deal strengthens TotalEnergies’ long-term foothold in South Korea, the world’s third-largest importer of LNG. As Asia increasingly turns to LNG as a transitional energy source, the fuel plays a key role in balancing renewable energy supply and reducing carbon emissions, particularly when used to replace coal in electricity generation.
“We are pleased with this agreement with HD Hyundai Chemical, which will supply natural gas to one of their industrial sites. This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices,” said Gregory Joffroy, Senior Vice President, LNG at TotalEnergies.
This partnership highlights TotalEnergies’ commitment to expanding its presence in the Asian market and supporting the region’s energy transition goals. As LNG continues to grow in importance, this deal reinforces the company’s ability to adapt to changing global energy demands and leverage its strategic supply capabilities in key regions.
In addition to providing a stable LNG supply to HD Hyundai Chemical, the deal is expected to contribute significantly to reducing South Korea’s reliance on coal, further cementing the role of LNG in the country’s energy mix.
