More Asian buyers have turned to TotalEnergies SE and its massive LNG portfolio bolstered by flexible U.S. supply to meet medium- and long-term natural gas demand.
TotalEnergies has signed a 10-year sales and purchase agreement (SPA) with Indian Oil Corp. for 0.8 million metric ton/year (mmty) starting in 2026. The French supermajor also disclosed a tentative five-year deal with Korea South-East Power Co. Ltd. for 0.5 mmty starting in 2027.
“These contracts enable us to contribute to the energy security and transition of these countries, to which we have an enduring commitment,” TotalEnergies’ Gregory Joffroy, senior vice president of liquefied natural gas, said.
TotalEnergies currently is the largest trader of U.S. LNG and is the second largest LNG seller in the world. It has targeted increasing its LNG sales to 50 mmty by 2025.
It also holds more than 20 mmty in regasification capacity in Europe, trading and LNG bunkering, but has been working to expand its foothold in the Asian supply market.
TotalEnergies is planning for LNG to account for around half of its energy trading business by 2030, according to the company’s most recent outlook.
The deals also come as Asian buyers in countries like India and South Korea are reckoning with demands for decarbonization and abundant, cheap energy.
Global spot gas prices have spiking on supply outages to Europe that could drive competition in the LNG market as Asian buying increases. An intense heat wave over parts of Southeast Asia and reports of Egypt searching for at least 20 cargoes this summer have helped keep traders on edge.
Prompt East Asian LNG prices have held around $12/MMBtu since the beginning of the week.
In India, parts of the country have seen rolling outages under the sweltering heat and record power demand, despite the government bringing online emergency natural gas-fired plants last month.
South Korea, however, is considering whether to reduce its reliance on LNG over the next 15 years and increase nuclear generation. A preliminary report from the Ministry of Trade, Industry and Energy outlined a potential cut in LNG from 28.2% of the country’s power mix this year to 25.1% by the end of the decade. The cut would accelerate after 2030, dropping to 11.1% in 2038.
In the meantime, however, one of South Korea’s and the world’s largest LNG buyers is seeking more cargoes for the next seven to 15 years. Korea Gas Corp. launched a tender Wednesday for 0.7-2.1 mmty starting in 2028, according to Kpler. It opened a similar tender that closed Monday for cargoes between 2025 and 2028.
Last week, Korea Middle Power Co. Ltd. purchased a cargo for delivery in mid-July, and locked in an extension for its SPA with Vitol Inc. for three cargoes each year through 2028.
