Total said in a statement on Wednesday that it had updated an existing 15-year supply contract for up to 1 million tonnes per annum of LNG. That deal was signed in 2008, with LNG shipments starting in 2010.
The latest iteration included a "price review" on the existing supply and sets a framework for the supply of an additional 1 million tpa, as well as "further co-operation throughout the LNG value chain".
"As a world leader in LNG, Total seeks to strengthen its position in Asia's growing LNG markets," Total upstream president Yves-Louis Darricarrere said in a statement. "This new agreement allows us to expand our LNG supply and reinforces or co-operation with Chinese companies."
No financial terms were disclosed in Total's announcement. However, Upstream reported last week, citing sources, that the new supply and purchase agreement would be worth about $20 billion.
It was not clear where the LNG would come from. Sources said LNG would be shipped from Total's new and existing facilities, but said it was unlikely any of the fuel would come from the Yamal LNG project in Russia, in which Total is a partner.
Total said it would benefit "in the coming years... from additional supply sources in Australia, Russia and the US, complementing existing Middle East and African sources, in order to respond to China's growing LNG demands.
Total currently supplies more than 8% of the current Chinese market. Under the original deal, about 5 million tonnes of LNG have been delivered to China so far.