TotalEnergies SE (NYSE: TTE) saw a boost in its share price after announcing a significant new agreement with HD Hyundai Chemical. The two companies signed a Heads of Agreement (HoA) under which TotalEnergies will supply 200,000 tons of liquefied natural gas (LNG) annually for seven years, starting in 2027. This long-term contract is a critical step in TotalEnergies' strategy to expand its LNG business, particularly in South Korea, the world’s third-largest LNG importer.
The deal will help TotalEnergies secure stable revenue streams, with pricing tied to both Brent crude oil and the Henry Hub natural gas benchmark. By locking in long-term sales through contracts like this, TotalEnergies aims to reduce its exposure to the volatility of spot market prices, reinforcing its presence in Asia’s growing energy market.
Gregory Joffroy, Senior Vice President of LNG at TotalEnergies, emphasized the importance of this partnership: "This agreement with HD Hyundai Chemical strengthens our position in Asia, securing long-term LNG sales and enabling us to supply natural gas to industrial sites in the region."
This agreement follows other recent strategic moves by TotalEnergies, including a 10-year deal to provide Air France-KLM with 1.5 million tons of sustainable aviation fuel (SAF) and a five-year extension to its sales and purchase agreement with China National Offshore Oil Corporation (CNOOC).
Market Impact: TotalEnergies shares gained 0.32% in premarket trading, reaching $69.39, as investors responded positively to the deal’s potential for growth and long-term stability.
The deal will help TotalEnergies secure stable revenue streams, with pricing tied to both Brent crude oil and the Henry Hub natural gas benchmark. By locking in long-term sales through contracts like this, TotalEnergies aims to reduce its exposure to the volatility of spot market prices, reinforcing its presence in Asia’s growing energy market.
Gregory Joffroy, Senior Vice President of LNG at TotalEnergies, emphasized the importance of this partnership: "This agreement with HD Hyundai Chemical strengthens our position in Asia, securing long-term LNG sales and enabling us to supply natural gas to industrial sites in the region."
This agreement follows other recent strategic moves by TotalEnergies, including a 10-year deal to provide Air France-KLM with 1.5 million tons of sustainable aviation fuel (SAF) and a five-year extension to its sales and purchase agreement with China National Offshore Oil Corporation (CNOOC).
Market Impact: TotalEnergies shares gained 0.32% in premarket trading, reaching $69.39, as investors responded positively to the deal’s potential for growth and long-term stability.