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On Wednesday, TotalEnergies (EPA:TTEF) announced a significant agreement to supply the Gujarat State Petroleum Corporation (GSPC) with 400,000 metric tons of liquefied natural gas (LNG) annually, starting from next year.
The deal, which was unveiled during India Energy Week, will see TotalEnergies deliver six LNG cargoes each year primarily to industrial customers in India.
The International Energy Agency (IEA) highlighted India’s position as the fourth-largest LNG buyer globally, with expectations to double its annual imports by the end of the decade. This increase is necessary to accommodate the country’s growing energy needs spurred by rapid urbanization and industrialization.
In line with the Indian government’s objective to boost natural gas to 15% of the national energy mix from the current 6.2%, GSPC aims to expand its long-term LNG portfolio and establish itself as a leading gas trader in India. The contract with TotalEnergies is a strategic move towards achieving this goal.
TotalEnergies, on its part, has emphasized the importance of the burgeoning Indian market to its expansion plans. The company is also seeking to ensure a balance for the substantial volume of U.S. LNG it has committed to purchasing over the next ten years.
This new contract follows TotalEnergies’ pattern of securing long-term agreements with predominantly Asian buyers, which includes a previous arrangement made last year with the Indian Oil Corporation (NSE:IOC).
With these deals, TotalEnergies is reinforcing its presence in the Asian market and particularly in India, which is a key area for the company’s growth strategy.
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