TotalEnergies has announced the signing of a sale and purchase agreement with Singapore’s Sembcorp Industries. The deal involves the supply of up to 0.8 million tons of liquefied natural gas (LNG) per year to Sembcorp for a duration of 16 years, starting in 2027.

The LNG will be sourced from TotalEnergies’ global portfolio. This new agreement adds to the companies’ current SPA, which runs until 2029, as the company stated in a press release.

By supplying this additional LNG supply to Singapore, TotalEnergies is contributing to the country’s energy security and to its decarbonization goals, in addition to supporting its customers in their transition to greater sustainability, the company added.

TotalEnergies, the world’s third-largest LNG player, plans to increase its LNG production and long-term purchases by 50% by 2030, while continuing to reduce carbon emissions and eliminating the methane emissions associated with the gas value chain. The company also works with local partners to promote the transition from coal to natural gas.