As a first concrete application of the MoU, Total Gas and Power (TGP) and China National Offshore Oil Corporation (CNOOC) have signed a heads of agreement (HOA) for the sale of liquefied natural gas (LNG) by Total to CNOOC.
Under the terms of this agreement, up to one million tons of LNG will be delivered annually to the Chinese oil group starting in 2010. The gas will be sourced from Total’s global LNG portfolio, based on its participation in over 10 liquefaction projects worldwide, and on TGP’s trading activities.
The MoU will be one of the foundations for Total and CNOOC to explore further co-operation, in line with China’s priorities of energy security and sustainable development, by providing increased access to clean sources of energy, which is also a priority for Total.
The HOA reportedly illustrates the confidence both parties have in the future of the Chinese natural gas industry. LNG imports are expected be decisive to secure China’s rapid growth, particularly in the coastal areas.
