FX.co ★ TotalEnergies, Sinopec In Deal To Collaborate In Low-carbon Energies

TotalEnergies SE of France and Sinopec, also known as China Petroleum & Chemical Corp, announced on Tuesday that they have entered into a strategic partnership to enhance their cooperation, specifically in the field of low-carbon energy solutions.

The agreement entails the convergence of both companies' research and development capacities with a focus on biofuels, green hydrogen, Carbon Capture, Utilization, and Storage (CCUS), and decarbonization.

TotalEnergies and Sinopec have a longstanding relationship spanning several years. Their collaboration has primarily been in Angola and Brazil through upstream operations, crude oil and liquefied natural gas (LNG) trade, oil product trading, and engineering amongst other areas.

Recently, both companies collaborated to establish a sustainable aviation fuel (SAF) production unit at a SINOPEC refinery in China. This unit is expected to produce approximately 230,000 tons of SAF per year.

Patrick Pouyanne, Chairman and CEO of TotalEnergies, expressed his satisfaction with this collaboration. He commented, "We are delighted to strengthen our partnership with SINOPEC, a crucial Chinese energy sector participant with whom we already partner in several countries. Our strategic cooperation agreement underscores our mutual commitment to leverage our multi-energy expertise to meet the growing global demand while creating the decarbonized energy framework of the future."