TotalEnergies Signs 15-Year LNG Supply Deal with China’s Jiangsu Guoxin
TotalEnergies has signed a long-term agreement with Jiangsu Guoxin Group to supply 900,000 tonnes of liquefied natural gas (LNG) annually to the Chinese energy company, strengthening its position in one of the world’s largest LNG import markets. The agreement, structured as a Heads of Agreement (HoA), is expected to begin in 2028 and continue for 15 years, subject to the finalization of the relevant sale and purchase agreements (SPAs).
The planned supply arrangement will provide Jiangsu Guoxin Group with a substantial volume of natural gas for use across Jiangsu Province. Deliveries are intended for the company’s new LNG terminal in Rudong, where the fuel will support city gas supply and flexible power generation. The arrangement is expected to help strengthen regional energy security while supporting the province’s ability to respond to periods of higher energy demand.
Jiangsu is one of China’s most economically significant provinces. It ranks second nationally in terms of gross domestic product (GDP) and natural gas consumption volume, making reliable access to energy an important factor in supporting its industrial activity and wider economic development. The province’s demand for natural gas also creates a significant market for LNG suppliers able to provide dependable volumes and flexible delivery arrangements.
For TotalEnergies, the agreement represents a further expansion of its long-term LNG sales portfolio in China. China is among the world’s largest LNG-importing countries and remains a major market for natural gas. The new arrangement with Jiangsu Guoxin Group adds another long-term customer relationship to TotalEnergies’ activities in the country and reflects the company’s continued engagement with local energy businesses.
Under the terms announced, the annual volume is set at 900,000 tonnes. The supply period is planned for 15 years, beginning in 2028, once the definitive SPAs have been finalized. The HoA therefore establishes the framework for the proposed long-term relationship, while completion of the sale and purchase agreements remains a condition for the supply arrangement to proceed as planned.
Gregory Joffroy, Senior Vice President, LNG at TotalEnergies, welcomed the agreement and said it reflects the strength of the company’s integrated LNG model and its ability to develop lasting partnerships with leading Chinese counterparties. He said the company was pleased to enter into the long-term arrangement with Jiangsu Guoxin Group.
Joffroy also pointed to the resilience of TotalEnergies’ global LNG portfolio. He said the company had continued delivering LNG to customers despite major disruptions during the year, demonstrating the portfolio’s capacity to provide reliable, competitive and flexible supplies. According to Joffroy, the agreement underlines the importance of maintaining an integrated global business capable of serving customers through changing market conditions and disruptions.
He added that natural gas can contribute to the energy transition by supporting industrial development and offering flexibility in electricity generation. That role is particularly relevant in high-growth provinces such as Jiangsu, where energy demand must be met while the province continues pursuing its longer-term economic and environmental objectives.
Jiangsu Guoxin Group also described the agreement as an important step in strengthening its energy supply arrangements. Zhang Wenxiang, Deputy General Manager of Jiangsu Guoxin Group, said the company was pleased to partner with TotalEnergies, which he described as a leading global LNG supplier.
Wenxiang said the agreement would strengthen the group’s security of gas supply and improve the operational efficiency of its infrastructure. He added that the arrangement is expected to enhance the resilience of the company’s energy supply chain, helping it manage supply requirements and support the reliable operation of its energy facilities.
He also linked the agreement to the group’s responsibilities as a provincial state-owned energy enterprise. According to Wenxiang, the partnership will help Jiangsu Guoxin Group implement China’s new energy security strategy and fulfil its responsibility to ensure energy supply. The planned LNG deliveries are intended to provide additional support for meeting the province’s natural gas requirements.
The agreement is also connected to Jiangsu Province’s stated goals for carbon peaking and carbon neutrality. Wenxiang said the partnership would support the province in pursuing those objectives while promoting high-quality economic development. The comments reflect the group’s view that strengthening gas supply infrastructure and securing LNG volumes can form part of the province’s broader approach to energy security and economic planning.
The proposed start date in 2028 leaves the parties to complete the definitive SPAs before deliveries begin. Once finalized, those agreements will provide the contractual basis for the annual LNG volumes over the 15-year period. Until then, the HoA represents the announced framework for the transaction rather than confirmation that all final supply contracts have been completed.
Through the agreement, TotalEnergies is seeking to deepen its presence in China’s LNG market and extend its long-term sales relationships with major local energy companies. For Jiangsu Guoxin Group, the planned annual volumes are intended to reinforce gas availability, support infrastructure operations and provide additional flexibility for meeting demand in a province with substantial economic activity and natural gas consumption.
Both companies have presented the arrangement as supporting reliable energy supply and the development needs of Jiangsu Province. Its implementation will depend on the completion of the SPAs, with deliveries expected to start in 2028 and continue for 15 years.
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