TotalEnergies and GSPC Sign Long-Term LNG Supply Agreement

TotalEnergies and the Gujarat State Petroleum Corporation Limited (GSPC) have recently announced a significant development in the energy sector with the signing of a long-term Sale and Purchase Agreement (SPA) for liquefied natural gas (LNG) supply. The agreement, set to commence in 2026 and span over ten years, solidifies the partnership between the two entities.

Under the terms of the agreement, TotalEnergies will supply GSPC with 400,000 tons of LNG annually, equivalent to six cargoes per year. The LNG will be sourced from TotalEnergies’ global portfolio and delivered to terminals on India’s west coast, catering primarily to GSPC’s industrial customers. Additionally, the LNG will also be utilized for domestic purposes, including households, businesses, and service stations for vehicles running on Compressed Natural Gas (CNG).

Gregory Joffroy, Senior Vice President LNG at TotalEnergies, expressed his enthusiasm for the partnership, stating, “We are delighted to have been chosen by GSPC to supply them with LNG in India. This new deal underscores TotalEnergies’ leadership in the LNG domain and commitment to India’s energy transition and security of supply.”

On the other hand, Milind Torawane, Managing Director at GSPC, highlighted the strategic importance of the agreement for the company, saying, “This deal will further strengthen GSPC’s portfolio and its operations in the gas value chain, leveraging GSPC Group’s transmission and distribution infrastructure.”

With GSPC aiming to secure competitive LNG on a long-term basis and TotalEnergies solidifying its position as one of the largest LNG players globally, the agreement marks a significant milestone in the energy landscape of India. It not only addresses the growing natural gas demand-supply deficit in Gujarat and across the country but also aligns with GSPC’s vision to become a leading player in gas trading.

The collaboration between TotalEnergies and GSPC signifies a shared commitment to sustainability, energy security, and innovation in the energy sector. As both entities work together to enhance the availability and accessibility of LNG in India, the agreement is expected to have a positive impact on the economy, environment, and energy security of the region.

Overall, the long-term LNG supply agreement between TotalEnergies and GSPC represents a strategic partnership that will not only benefit the two companies but also contribute to the development of the energy sector in India, paving the way for a more sustainable and secure energy future.