Liquefied Natural Gas: TotalEnergies will Supply 400,000 Tons of LNG per Year for 15 Years in the Dominican Republic
TotalEnergies (TTE) has signed a significant long-term LNG supply agreement with Energia Natural Dominicana (ENADOM). The deal involves delivering 400,000 tons of LNG annually for 15 years, starting mid-2027, with pricing indexed to Henry Hub.
The agreement will support ENADOM's 470 MW combined-cycle power plant currently under construction, enhancing the Dominican Republic's electricity generation capacity. This initiative aims to reduce the country's dependence on coal and fuel oil by transitioning to natural gas, a less carbon-intensive energy source.
TotalEnergies, positioned as the world's third-largest LNG player, maintains a global portfolio of 40 Mt/y in 2024 through interests in various liquefaction plants. The company aims to increase natural gas's share in its sales mix to nearly 50% by 2030, focusing on reducing carbon emissions and eliminating methane emissions in the gas value chain.
TotalEnergies (TTE) ha firmato un importante accordo di fornitura a lungo termine di GNL con Energia Natural Dominicana (ENADOM). L'accordo prevede la consegna di 400.000 tonnellate di GNL all'anno per 15 anni, a partire dalla metà del 2027, con prezzi indicizzati all'Henry Hub.
L'accordo sosterrà la centrale a ciclo combinato da 470 MW di ENADOM attualmente in costruzione, aumentando la capacità di generazione elettrica della Repubblica Dominicana. Questa iniziativa mira a ridurre la dipendenza del paese dal carbone e dal gasolio, passando al gas naturale, una fonte energetica meno intensiva in carbonio.
TotalEnergies, posizionata come il terzo maggiore operatore mondiale di GNL, gestisce un portafoglio globale di 40 Mt/anno nel 2024 attraverso partecipazioni in diversi impianti di liquefazione. L'azienda punta a portare la quota del gas naturale nel suo mix di vendite a quasi il 50% entro il 2030, concentrandosi sulla riduzione delle emissioni di carbonio e sull'eliminazione delle emissioni di metano nella catena del valore del gas.
TotalEnergies (TTE) ha firmado un importante acuerdo de suministro a largo plazo de GNL con Energia Natural Dominicana (ENADOM). El acuerdo contempla la entrega de 400.000 toneladas de GNL anuales durante 15 años, a partir de mediados de 2027, con precios indexados a Henry Hub.
El acuerdo apoyará la planta de ciclo combinado de 470 MW de ENADOM, actualmente en construcción, aumentando la capacidad de generación eléctrica de la República Dominicana. Esta iniciativa busca reducir la dependencia del país del carbón y el fuelóleo, pasando al gas natural, una fuente energética menos intensiva en carbono.
TotalEnergies, posicionado como el tercer mayor actor mundial de GNL, mantiene una cartera global de 40 Mt/año en 2024 mediante participaciones en varias plantas de licuefacción. La compañía aspira a aumentar la proporción de gas natural en su mezcla de ventas a casi el 50% para 2030, enfocándose en reducir las emisiones de carbono y eliminar las emisiones de metano en la cadena de valor del gas.
TotalEnergies (TTE)는 Energia Natural Dominicana (ENADOM)과 중요한 장기 LNG 공급 계약을 체결했습니다. 이 계약은 2027년 중반부터 시작하여 연간 40만 톤의 LNG를 15년간 공급하며, 가격은 헨리 허브 지수에 연동됩니다.
이 계약은 현재 건설 중인 ENADOM의 470MW 복합 사이클 발전소를 지원하여 도미니카 공화국의 전력 생산 능력을 강화할 예정입니다. 이 사업은 석탄과 중유에 대한 국가 의존도를 줄이고, 탄소 배출이 적은 천연가스로 전환하는 것을 목표로 합니다.
TotalEnergies는 세계 3위 LNG 사업자로서 2024년 기준 다양한 액화 플랜트 지분을 통해 연간 4,000만 톤의 글로벌 포트폴리오를 보유하고 있습니다. 회사는 2030년까지 판매 믹스에서 천연가스 비중을 거의 50%까지 늘리고, 탄소 배출 감소와 가스 밸류체인 내 메탄 배출 제거에 집중하고자 합니다.
TotalEnergies (TTE) a signé un accord important de fourniture à long terme de GNL avec Energia Natural Dominicana (ENADOM). L'accord prévoit la livraison de 400 000 tonnes de GNL par an pendant 15 ans, à partir de la mi-2027, avec des prix indexés sur Henry Hub.
Ce contrat soutiendra la centrale à cycle combiné de 470 MW d'ENADOM, actuellement en construction, renforçant la capacité de production électrique de la République dominicaine. Cette initiative vise à réduire la dépendance du pays au charbon et au fioul en transitionnant vers le gaz naturel, une source d'énergie moins carbonée.
TotalEnergies, positionné comme le troisième acteur mondial du GNL, dispose en 2024 d'un portefeuille mondial de 40 Mt/an via des participations dans plusieurs usines de liquéfaction. L'entreprise ambitionne d'augmenter la part du gaz naturel dans son mix de ventes à près de 50 % d'ici 2030, en se concentrant sur la réduction des émissions de carbone et l'élimination des émissions de méthane dans la chaîne de valeur du gaz.
TotalEnergies (TTE) hat eine bedeutende langfristige LNG-Liefervereinbarung mit Energia Natural Dominicana (ENADOM) unterzeichnet. Der Vertrag sieht vor, jährlich 400.000 Tonnen LNG über 15 Jahre ab Mitte 2027 zu liefern, mit Preisen, die an den Henry Hub gekoppelt sind.
Die Vereinbarung unterstützt das derzeit im Bau befindliche 470-MW-Kombikraftwerk von ENADOM und erhöht die Stromerzeugungskapazität der Dominikanischen Republik. Ziel ist es, die Abhängigkeit des Landes von Kohle und Heizöl zu reduzieren und auf Erdgas umzusteigen, eine energieärmere Kohlenstoffquelle.
TotalEnergies, als drittgrößter LNG-Anbieter weltweit positioniert, verfügt 2024 über ein globales Portfolio von 40 Mt/Jahr durch Beteiligungen an verschiedenen Verflüssigungsanlagen. Das Unternehmen strebt an, den Anteil von Erdgas am Verkaufsportfolio bis 2030 auf fast 50 % zu erhöhen und legt dabei den Fokus auf die Reduzierung von CO2-Emissionen und die Eliminierung von Methanemissionen in der Gas-Wertschöpfungskette.
- Secured 15-year LNG supply agreement, providing long-term revenue stability
- Strategic expansion in Dominican Republic market supports company's LNG growth
- Agreement strengthens TotalEnergies' position as third-largest global LNG player
- Contract pricing indexed to Henry Hub provides market-based revenue structure
- Supply commencement delayed until mid-2027
- Agreement subject to final SPA negotiations and approvals
Insights
TotalEnergies' new 15-year LNG supply agreement with ENADOM represents a strategic expansion of its LNG portfolio and reinforces its position as the world's third-largest LNG player. The commitment to deliver 400,000 tons annually starting mid-2027 provides a secured outlet for TotalEnergies' growing US LNG production capacity.
This deal aligns perfectly with TotalEnergies' strategy to increase natural gas in its sales mix to nearly 50% by 2030. The Henry Hub pricing index offers a transparent benchmark while the 15-year duration provides operational stability. For the Dominican Republic, this supply enables their transition away from higher-emission coal and fuel oil toward less carbon-intensive natural gas.
The timing is significant as global LNG demand continues to grow, particularly as more countries seek cleaner alternatives to coal. TotalEnergies is strategically capturing market share in the Caribbean region, where natural gas infrastructure is expanding. The agreement demonstrates the company's vertical integration capabilities across the entire LNG value chain - from production and liquefaction to trading and delivery.
By securing this long-term offtake agreement, TotalEnergies is effectively de-risking its investments in US LNG production and strengthening its diversified portfolio approach across various global LNG markets.
This 15-year LNG supply agreement represents a meaningful addition to TotalEnergies' contract portfolio and revenue stability. While the 400,000 tons per year volume is modest relative to TotalEnergies' 40 Mt/y global portfolio (approximately 1% of current capacity), the 15-year duration provides valuable long-term revenue predictability.
The Henry Hub indexing is noteworthy as it ties contract pricing to US natural gas benchmarks rather than oil-linked pricing common in many LNG contracts. This aligns well with TotalEnergies' increasing US LNG supply sources and provides a natural hedge for their American production assets.
From a capital allocation perspective, this deal requires minimal new investment while generating steady returns from existing infrastructure. The 2027 start date indicates TotalEnergies is effectively selling future production capacity well in advance, demonstrating strong market confidence in their long-term supply capabilities.
The agreement supports TotalEnergies' progressive energy transition strategy while maintaining focus on returns. Natural gas represents a higher-margin segment compared to traditional oil products, potentially improving the company's overall margin profile as it executes on its strategy to increase gas in its sales mix.
For investors, this deal reinforces TotalEnergies' commitment to predictable cash flows and dividends while positioning the company for the evolving energy landscape where natural gas serves as a transition fuel.
- TotalEnergies signed an agreement with Energia Natural Dominicana (ENADOM) to supply 400,000 tons of LNG
- The contract has a 15-year duration and will start mid-2027
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This LNG will support the growing demand of electricity in the
Dominican Republic
This agreement will enable ENADOM to supply natural gas to the 470 MW combined-cycle power plant, currently under construction, which will increase the country's electricity generation capacity. This project contributes to the energy transition of the
"We are pleased to have signed this agreement to answer, alongside AES and its partners, the energy needs of the
“This agreement with TotalEnergies, is the result of the confidence placed in the
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TotalEnergies, the world’s third largest LNG player
TotalEnergies is the world’s third largest LNG player with a global portfolio of 40 Mt/y in 2024 thanks to its interests in liquefaction plants in all geographies. The Company benefits from an integrated position across the LNG value chain, including production, transportation, access to more than 20 Mt/y of regasification capacity in
About TotalEnergies
TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas, biogas and low-carbon hydrogen, renewables and electricity. Our more than 100,000 employees are committed to provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.
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FAQ
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