Integrated oil and gas company
) announced that its unit Total Gas & Power Limited has entered
into a long-term agreement with South Korean national company Korea
Gas Corporation ("Kogas") to purchase liquefied natural gas
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Per the agreement, TOTAL's unit will purchase 0.7 million metric
tons of LNG per year from Kogas for twenty years. The LNG will be
supplied from Sabine Pass terminal in Louisiana, scheduled to start
operation from 2017.
This new agreement comes on the heels of another signed by TOTAL to
purchase 2 million metric tons per year of LNG from Kogas,
generated from GLNG project in Australia.
There has been increasing awareness on a global scale against the
use of polluting fossil fuel for power generation. The developing
countries in Asia and some of the European countries are looking
forward to utilizing natural gas and LNG to meet their ever
increasing demand for power generation.
To capitalize on the rising demand for LNG worldwide, TOTAL has
been very active, entering into partnership and acquisition deals
in different prospects around the globe.
In July 2012, TOTAL increased its holding in the Ichthys liquefied
natural gas project in Australia by another 6% to 30%. Backed by
its strong financials, TOTAL is also able to acquire stakes in some
of the major LNG projects in the Middle East, Asia-Pacific and
Most importantly, TOTAL is securing interest in LNG re-gasification
capacities in key LNG importing countries. By this way, the company
has gradually strengthened its presence in the entire LNG cycle,
which we believe will boost its margins and bottom-line.
TOTAL S.A. currently retains a Zacks #3 Rank (short-term Hold
rating). Numbering among its competitors in the global arena is
France-based TOTAL is one of the largest publicly traded, globally
integrated oil and gas companies based on production volumes,
proved reserves and market capitalization. The company has
exploration and production operations spanning five continents.
With a market capitalization of $121.1 billion, the company has
96,104 full time employees.