REG-TOTAL Total Partners with Shenergy Group to Jointly Market LNG in China

TotalEnergies SEAnnouncement

23/03/2021 07:35

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20210323:nBw3n1tZqa&default-theme=true


Total Partners with Shenergy Group to Jointly Market LNG in China

 

TOTAL (Paris:FP) (LSE:TTA) (NYSE:TOT):

Total and Shenergy Group, the leading energy player in Shanghai, have signed
binding agreements for the supply of up to 1.4 million tons per annum of
Liquefied Natural Gas (LNG) from Total, as well as the creation of a joint
venture to expand LNG marketing in China.

The joint venture (Total 49%, Shenergy Group 51%) will sell LNG, supplied by
Total, to customers in Shanghai and throughout the neighboring Yangtze River
Delta regions, one of the main LNG markets in China. Additionally, Total will
supply LNG to Shanghai Gas, the natural gas subsidiary of Shenergy Group, for
its distribution business.

“This deal with Shenergy Group is a great opportunity to partner with an
experienced Gas & LNG player with strong ambitions, as well as a unique
entry point into the downstream LNG market in China. This partnership is in
line with our strategy to grow along the entire gas value chain,” said
Stéphane Michel, President Gas, Renewables & Power at Total. “LNG is
playing a key role in meeting the growing demand for natural gas, especially
in China where we are pleased to contribute to the diversification of the
energy mix.”

“The Shenergy Group is very pleased to sign this partnership agreement with
Total, which secures a long-term, reliable supply of LNG for the Yangtze River
Delta. The Joint Venture with Total will develop the LNG downstream market and
support the objective of Shenergy Group to improve the air quality and reduce
emissions in the region,” said Mr. Wang Zhehong, Vice President of Shenergy
Group and Chairman of Shanghai Gas.

The LNG supply to the JV and Shanghai gas distribution business will be
sourced from global LNG portfolio of Total through a long-term LNG Sale and
Purchase agreement ramping up to 1.4 million tons per annum for a term of
twenty years. It will be delivered to Shenergy’s Chinese LNG terminals.

About Shenergy Group

Shenergy (Group) Co., Ltd., founded in 1987, is a Shanghai-based state-owned
company that is engaged in power generation, gas industry, finance, cable
industry, energy service and trade. Its subsidiary Shanghai Gas integrates
natural gas procurement, pipeline network distribution and sales services,
which supplied 9.8 billion cubic meters of natural gas and served 6.3 million
natural gas users in 2019.

Total, Second Largest Private Global LNG Player

Total is the world's second largest privately owned LNG player, with a global
portfolio of nearly 50 Mtpa by 2025 and a global market share of around 10%.
The Group benefits from strong and diversified positions throughout the LNG
value chain: gas production and liquefaction, LNG transportation and trading,
and contribution to the development of the LNG industry for maritime
transport. Through its interests in liquefaction plants in Qatar, Nigeria,
Russia, Norway, Oman, Egypt, the United Arab Emirates, the United States,
Australia and Angola, the Group markets LNG on all world markets. 

About Total

Total is a broad energy company that produces and markets fuels, natural gas
and electricity. Our 100,000 employees are committed to better energy that is
more affordable, more reliable, cleaner and accessible to as many people as
possible. Active in more than 130 countries, our ambition is to become the
responsible energy major.

Cautionary Note

This press release, from which no legal consequences may be drawn, is for
information purposes only. The entities in which TOTAL SE directly or
indirectly owns investments are separate legal entities. TOTAL SE has no
liability for their acts or omissions. In this document, the terms
“Total”, “Total Group” and Group are sometimes used for convenience.
Likewise, the words “we”, “us” and “our” may also be used to refer
to subsidiaries in general or to those who work for them. This document may
contain forward-looking information and statements that are based on a number
of economic data and assumptions made in a given economic, competitive and
regulatory environment. They may prove to be inaccurate in the future and are
subject to a number of risk factors. Neither TOTAL SE nor any of its
subsidiaries assumes any obligation to update publicly any forward-looking
information or statement, objectives or trends contained in this document
whether as a result of new information, future events or otherwise.

Total 

Media Relations: +33 1 47 44 46 99 l presse@total.com
(mailto:presse@total.com) l @TotalPress

Investor Relations: +44 (0)207 719 7962 l ir@total.com (mailto:ir@total.com)



View source version on businesswire.com:
https://www.businesswire.com/news/home/20210323005502/en/
(https://www.businesswire.com/news/home/20210323005502/en/)

Total


Copyright Business Wire 2021