PARIS/SHANGHAI, Nov. 4, 2026 (XOL Africa) — French energy group TotalEnergies has agreed to supply 900,000 tonnes of liquefied natural gas annually to China’s Jiangsu Guoxin Group for 15 years, expanding its long-term presence in one of the world’s largest LNG import markets as demand for flexible energy supplies grows.
In a statement released on Wednesday, TotalEnergies said it had signed a heads of agreement with the Chinese state-owned energy company, with deliveries expected to begin in 2028, subject to the finalisation of binding sale and purchase agreements.
The proposed contract represents 13.5mn tonnes of LNG over its full duration, strengthening TotalEnergies’ long-term sales portfolio in China and securing future supplies for Jiangsu, one of the country’s most economically significant provinces.
Under the agreement, LNG shipments will be delivered to Jiangsu Guoxin Group’s new import terminal in Rudong, where the gas will be used for urban distribution networks and flexible electricity generation.
The arrangement is intended to strengthen regional energy security and help manage fluctuations in electricity demand, particularly during periods of peak consumption.
Jiangsu is China’s second-largest province by gross domestic product and natural gas consumption, making it an important market for international energy suppliers seeking long-term contracts with Chinese buyers.
Gregory Joffroy, senior vice-president for LNG at TotalEnergies, said the agreement demonstrated the company’s ability to maintain reliable supplies despite disruptions affecting global energy markets.
“We are very pleased to have entered into this long-term agreement with Jiangsu Guoxin Group, which reflects the strength of our integrated LNG model and our ability to build enduring partnerships with leading local Chinese counterparties,” Joffroy said.
He added that the company’s integrated global LNG portfolio had enabled it to continue delivering supplies to customers despite significant market disruptions during the year.
Joffroy said natural gas would continue to play a role in supporting industrial development and providing flexibility for electricity generation in fast-growing Chinese provinces.
The agreement also reflects the importance of long-term LNG contracts in China’s energy strategy, as provincial energy companies seek to diversify supply sources and reduce exposure to short-term market volatility.
For TotalEnergies, the deal reinforces its strategy of combining LNG production, transportation and trading with long-term customer relationships in major Asian markets.
China remains a central destination for international LNG suppliers, with gas used across industrial facilities, urban heating systems and electricity generation.
Zhang Wenxiang, deputy general manager of Jiangsu Guoxin Group, said the partnership would strengthen the company’s supply security while improving the utilisation of its energy infrastructure.
“The signing of this agreement will effectively strengthen Jiangsu Guoxin Group’s gas supply security and improve the operational efficiency of its infrastructure, while enhancing the resilience of its energy supply chain,” Zhang said.
He added that the agreement would support Jiangsu’s efforts to meet its energy security objectives while contributing to China’s longer-term carbon reduction ambitions.
Chinese authorities have promoted natural gas as part of efforts to diversify the country’s energy mix, although its role in the transition remains subject to questions over emissions, import dependence and long-term demand.
For Jiangsu Guoxin Group, access to contracted LNG supplies is expected to provide greater flexibility in meeting industrial and residential demand while supporting gas-fired power generation.
The transaction remains conditional on the completion of definitive sale and purchase agreements, meaning the proposed volumes and delivery arrangements have not yet become fully binding.
If finalised, the deal will add another substantial long-term supply commitment to TotalEnergies’ Chinese LNG business, extending deliveries into the early 2040s and deepening the French group’s commercial relationship with one of Asia’s largest energy-consuming economies.
SUPPORT AFRICAN BUSINESS JOURNALISM
Help XOL Africa expand independent business reporting across Africa.
SUPPORT XOL AFRICA →
