TotalEnergies has signed an agreement with China's Jiangsu Guoxin Group covering the supply of liquefied natural gas, according to reports in the trade press. The two reports frame the announcement slightly differently: one presents a concluded 15-year supply deal, while the other describes the arrangement as preliminary. In both accounts, the substance is a long-term delivery commitment between the two companies.
The terms as reported are an annual volume of 900,000 tons of LNG over a 15-year period, with first cargoes slated for 2028. That gives the buyer a defined supply position for a decade and a half and gives the seller a committed outlet over the same span. Beyond the volume, duration, and start year, the reports contain no details on pricing, delivery points, or shipping arrangements.
Long-term supply agreements of this kind are a standard instrument in the LNG trade. Sellers use committed offtake to underpin investment in liquefaction and shipping, while buyers use them to lock in volumes and reduce reliance on spot purchases. A 15-year term is long enough to span multiple investment cycles on both sides, which is why the confirmed status of the contract matters as much as the headline volume.
For the industry, the significance lies in supply security and planning visibility. A Chinese buyer with 900,000 tons per year secured from 2028 gains a predictable supply position, while TotalEnergies gains committed demand it can factor into portfolio decisions. If the arrangement is finalized rather than left preliminary, the reported terms would be the baseline for what actually flows from 2028 onward.
Source: LNG Prime, Offshore Engineer
