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8 min ago 3 min read
TotalEnergies has signed a preliminary 15-year agreement to supply China’s Jiangsu Guoxin Group with 900,000 tonnes of liquefied natural gas (LNG) annually.
The deal comes as the French energy major looks to expand its long-term presence in one of the world’s largest gas markets.
The heads of agreement deliveries begin in 2028, subject to the signing of definitive sale and purchase agreements.
Under the proposed deal, TotalEnergies will supply LNG to Jiangsu Guoxin Group’s new import terminal in Rudong, Jiangsu province. The gas will be used for city gas distribution and flexible power generation, supporting regional energy supply and helping to manage periods of peak demand.
Jiangsu is China’s second-largest provincial economy and its second-largest natural gas-consuming province, according to TotalEnergies.
Gregory Joffroy, Senior Vice President of LNG at TotalEnergies, said the agreement reflected the company’s integrated LNG model and its ability to maintain reliable supplies despite disruption to global energy markets.
“Our ability to keep delivering LNG to our customers despite major disruptions this year demonstrates the resilience of our integrated global LNG portfolio,” said Joffroy.
He added that the agreement highlighted the role natural gas could play in supporting industrial development and providing greater flexibility for power generation in high-growth regions such as Jiangsu.
For Jiangsu Guoxin Group, the proposed arrangement is intended to strengthen its gas supply security while making better use of its existing and planned infrastructure.
Zhang Wenxiang, Deputy General Manager of Jiangsu Guoxin Group, said the partnership would improve the resilience of the company’s energy supply chain and support its responsibilities as a provincial state-owned energy enterprise.
“The signing of this agreement will effectively strengthen Jiangsu Guoxin Group’s gas supply security and improve the operational efficiency of its infrastructure,” said Zhang.
He added that the deal would also support Jiangsu’s carbon peaking and carbon neutrality objectives while contributing to the province’s wider economic development.
The agreement comes amid wider efforts by China to strengthen its energy security and deepen its LNG relationships with Gulf producers.
Qatar, previously China’s largest LNG supplier, has seen exports disrupted by damage to facilities at Ras Laffan and instability around the Strait of Hormuz. Qatari shipments to China fell 57.6% in the first seven months of 2026 compared with the same period a year earlier, to 4.7 million tonnes, according to news outlet Al Majalla.
