LNG Power Play: TotalEnergies Strikes 16-Year Deal with Sembcorp Fuels

TotalEnergies SE TTE inked a sale and purchase agreement (SPA) with Sembcorp Fuels, a wholly owned subsidiary of Singapore-based Sembcorp Industries.

The deal entails delivering up to 0.8 million tons of liquefied natural gas (LNG) per annum (Mtpa) for sixteen years, starting in 2027. 

The company stated that LNG will be sourced from TotalEnergies' global portfolio. This new agreement will add to the companies' current SPA, which will run until 2029.

Earlier this month, TotalEnergies sealed a cooperation deal with ONGC to detect methane emissions in India and forged a binding agreement with Vantage Drilling to acquire a majority stake in the Tungsten Explorer drillship.

Also, the company surpassed revenue expectations with $59.237 billion in fourth-quarter FY23, outpacing consensus estimates. Despite a 12% Y/Y decline in hydrocarbon production, TotalEnergies boosted quarterly dividends by 7.1% to €0.79.

Also Read: TotalEnergies Shares Dip – Reportedly Explores Sale Of 50% Stake In Whopping $2.5B Renewable Portfolio

Price Action: TTE shares closed lower by 0.96% at $63.92 on Wednesday.