Total under the terms of an existing 15-year contract with China National Office Oil Corp. supplies the Chinese market with 1 million tons of liquified natural gas per year. Total said it would review the price arrangement on existing supplies and supply another 1 million tons of LNG per year under the terms of the new cooperation agreement.
Yves-Louis Darricarrere, president of upstream operations for Total, said the agreement gives the French supermajor a solid foundation in the expanding Asian market.
"As a world leader in LNG, Total seeks to strengthen its position in Asia’s growing LNG markets, where China is among the largest players with 20 percent annual growth," he said in a statement Wednesday.
Total has supplied the Chinese market with about 8 percent of its LNG needs since 2010. The company said it would work to meet growing regional demand by sourcing gas from its assets in Australia, Russia and the United States.
There was no statement from CNOOC on the deal.