TotalEnergies to Supply India's GSPC with LNG

TotalEnergies SE has closed a long-term deal to supply India’s state-owned Gujarat State Petroleum Corporation Limited (GSPC), with 400,000 tons of liquefied natural gas (LNG), amounting to six cargoes per year.

Under a sale and purchase agreement between the two companies, TotalEnergies will supply GSPC with LNG for ten years starting in 2026, the French multinational energy firm said in a news release.

The LNG will be sourced from TotalEnergies' global portfolio and delivered to terminals on India's west coast, primarily serving GSPC's industrial customers, according to the release.

TotalEnergies said it will also supply Indian households for domestic use, businesses, and service stations for vehicles running on compressed natural gas (CNG), such as auto-rickshaws.

“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,” Gregory Joffroy, TotalEnergies Senior Vice President for LNG, said.

“This agreement marks a major step towards reinforcing GSPC’s strategy to secure competitive LNG on a long-term basis, helping to bridge the growing natural gas demand-supply deficit in Gujarat and across India. Partnering with TotalEnergies, one of the largest LNG players in the world, aligns with GSPC’s strategy to build up its long-term portfolio and become a leading Indian player in gas trading”, Milind Torawane, GSPC Managing Director said.

“This deal will further strengthen GSPC’s portfolio and its operations in the gas value chain, leveraging GSPC Group’s transmission and distribution infrastructure,” Torawane added.

According to the release, GSPC, one of the largest gas trading companies in India, is involved in the entire gas value chain, including LNG terminals, gas transmission, gas distribution and power generation. In Gujarat, GSPC and its group companies supply one-third of the natural gas demand in the state, serving 2.3 million households and 20,000 industrial and commercial clients, as well as operating over 800 CNG stations.

Renewable PPA Signed in France

Last month, TotalEnergies signed a power purchase agreement (PPA) to supply renewable electricity to STMicroelectronics sites in France.

TotalEnergies will provide the global semiconductor firm with renewable power produced by two wind and solar farms of 75 megawatts (MW) it operates. The contract, which started in January and has a length of 15 years, represents an overall volume of 1.5 terrawatt-hours, the company said in an earlier statement.

"We are delighted to sign this agreement with STMicroelectronics, which demonstrates our ability to provide long-term and innovative clean firm power solutions tailored to our customers' needs," Sophie Chevalier, TotalEnergies Senior Vice President for Flexible Power, said. "TotalEnergies aims to be a preferred partner to support tech industry players towards their decarbonization efforts, and this agreement showcases our commitment and capabilities”.

“This first PPA in France marks yet another important step towards ST’s goal of becoming carbon neutral in its operations (Scope 1 and 2 emissions, and partially scope 3) by 2027, including the sourcing of 100% renewable energy by 2027,” Geoff West, STMicroelectronics EVP and Chief Procurement Officer, said. “PPAs will play a major role in our transition, and we have already signed several to support ST’s operations in Italy and Malaysia. Starting in 2025, this PPA with TotalEnergies will provide a significant level of renewable energy for ST’s operations in France, which includes R&D [research and development], design, sales and marketing and large-volume chip manufacturing”.

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