French supermajor TotalEnergies signed a Heads of Agreement (HoA) with South Korea’s Hyundai Chemical, the Paris-headquartered company announced on September 24.

Under the terms of the agreement, the French firm will deliver 200,000 tonnes of LNG per year for seven years beginning in 2027. Prices for the LNG will be indexed to Brent and Henry Hub.

The agreement allows TotalEnergies to strengthen its presence in South Korea, which is the world’s third biggest LNG importer, trailing only China and Japan.

South Korea is seeking to increase its LNG imports in order to complete fuel switching from coal to gas as part of the country's energy transition. Seoul has set a target of reaching net-zero by 2050.

“We are pleased with this agreement with HD Hyundai Chemical, which will supply natural gas to one of their industrial sites. This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices,” TotalEnergies Senior Vice President of LNG, Gregory Joffroy said in a statement.

Earlier in September, TotalEnergies also signed an HoA with South Korea’s national natural gas firm KOGAS. The deal will see it deliver 1mn tonnes of LNG annually for a 10-year period beginning at the end of 2027.

The delivery supply increases to 3mn tonnes from 2028 onward. KOGAS is the world's biggest importer of LNG. The imported super-chilled fuel will be distributed by KOGAS to Korean businesses, industries, and households.

The majority of the LNG supply will be sent from TotalEnergies US LNG production and offtake.

"We thank KOGAS for its trust in TotalEnergies’ ability to supply its Asian customers with reliable and competitive LNG through its global portfolio. This agreement enables TotalEnergies to secure long-term outlets in Asia, consistently with the growth of its LNG supply, particularly from the United States", TotalEnergies Chairman and CEO said Patrick Pouyanne said in a statement.