TotalEnergies SE (LSE: TTE), the world's third largest LNG player, has signed a Heads of Agreement with Jiangsu Guoxin Group to deliver 900,000 tonnes of liquefied natural gas per year to China's Jiangsu Province. The agreement, subject to finalisation of Sale and Purchase Agreements, is set to commence in 2028 and run for 15 years. The deal expands TotalEnergies' long-term LNG sales portfolio in China, which the company describes as one of the world's largest importing and fastest growing LNG markets, and reinforces its ambition to raise natural gas to close to 50% of its sales mix by 2030.

Key Points

  • TotalEnergies SE (LSE: TTE / NYSE: TTE / Paris: TTE) signed a Heads of Agreement with Jiangsu Guoxin Group
  • TotalEnergies will supply 900,000 tonnes of LNG per year to Jiangsu Province, China, beginning in 2028 for a 15-year term
  • Volumes will be delivered to Jiangsu Guoxin Group's new LNG terminal in Rudong for city gas supply and flexible power generation; Jiangsu is China's second-largest province by GDP and natural gas consumption
  • Investors should watch for confirmation that Sale and Purchase Agreements are finalised, which remains a condition of this arrangement

TotalEnergies and Jiangsu Guoxin Group Agree 900,000-Tonne Annual LNG Supply Starting 2028

The agreement — structured as a Heads of Agreement ahead of binding Sale and Purchase Agreements — commits TotalEnergies to supplying 900,000 tonnes of LNG per year to Jiangsu Guoxin Group from 2028 over a 15-year period. Deliveries will be made to Jiangsu Guoxin's new LNG import terminal at Rudong, on the coast of Jiangsu Province. The volumes are earmarked for city gas distribution and flexible power generation, intended to secure energy supply and manage peak demand across the province. The deal remains conditional on the finalisation of the underlying Sale and Purchase Agreements, which investors should note as a material precondition.

Rudong Terminal Delivery Targets City Gas and Power Generation Across China's Second-Largest Provincial Economy

Jiangsu Province holds the distinction of being China's second-largest province by both GDP and natural gas consumption volume, making the Rudong terminal a strategically significant import point. Jiangsu Guoxin Group is a large state-owned capital investment company under the Jiangsu provincial government, with core businesses spanning energy, finance, and strategic emerging industries. Its integrated energy infrastructure combines wind, solar, hydro, thermal, gas, and storage assets. The announcement states that the LNG supply will support Jiangsu Province's carbon peaking and carbon neutrality goals alongside wider industrial and economic development objectives.

Deal Strengthens TotalEnergies' Integrated LNG Model and Long-Term China Portfolio

TotalEnergies held a global LNG portfolio of 44 million tonnes in 2025, with interests in liquefaction plants across multiple geographies and access to more than 20 million tonnes per annum of regasification capacity in Europe. The company targets raising natural gas to close to 50% of its sales mix by 2030. The Jiangsu Guoxin agreement further extends its long-term contracted sales base in China, one of its priority growth markets. Senior Vice President for LNG Gregory Joffroy highlighted the resilience of TotalEnergies' integrated global LNG portfolio in maintaining supply to customers despite major disruptions, though the nature of those disruptions was not detailed further in the announcement.

Conditional Nature of Heads of Agreement Represents Key Risk for Investors to Monitor

Whilst the Heads of Agreement signals clear commercial intent from both parties, the transaction is explicitly subject to the finalisation of Sale and Purchase Agreements. Until those binding contracts are executed, the supply arrangement carries execution risk. TotalEnergies operates across approximately 120 countries with more than 100,000 employees and is listed in Paris, London, and New York. Any material change in Chinese LNG import policy, provincial energy regulation, or the Rudong terminal's development timeline could affect the deal's progression. Investors may be watching closely for formal SPA confirmation as the next significant milestone in this transaction.