TotalEnergies and Gujarat State Petroleum Corporation Limited (GSPC) signed a long-term Sale and Purchase Agreement (SPA) during a ceremony on the sidelines of the India Energy Week in New Delhi. TotalEnergies will supply GSPC with 400,000 tons of LNG per year for 10 years under the terms of the agreement, which will take effect in 2026.

LNG to Boost Industrial and Domestic Use

TotalEnergies will produce the LNG from its international portfolio and supply it to terminals on India’s west coast. The LNG will supply GSPC’s industrial clients mainly and will also fuel households, businesses, and CNG stations. The latter will power Compressed Natural Gas (CNG) running vehicles, such as auto-rickshaws.

Gregory Joffroy, Senior Vice President LNG at TotalEnergies, “We are delighted to have been chosen by GSPC to supply them with LNG in India. This new deal underscores TotalEnergies’ leadership in the LNG domain and commitment to India’s energy transition and security of supply.”

Supporting GSPC’s Strategic Growth

The deal is consistent with GSPC’s long-term competitive LNG strategy. GSPC’s managing director, Milind Torawane, underlined the significance of the agreement, saying it was a major step in bolstering the company’s long-term goal to secure cheap LNG. He explained that the agreement would help bridge the growing natural gas demand-supply gap in Gujarat and across India.

Partnering with TotalEnergies, one of the largest LNG players globally, aligned with GSPC’s strategy to build its long-term portfolio and become a leading Indian player in gas trading. He further mentioned that the deal would strengthen GSPC’s portfolio and its operations in the gas value chain by leveraging the company’s transmission and distribution infrastructure.

The transaction will bridge Gujarat’s gas demand-supply gap, enhancing GSPC’s portfolio and business in the value chain of gas. Besides, the transaction will utilize GSPC Group’s existing transmission and distribution network to increase the country’s energy security.

Also read: TotalEnergies and STMicroelectronics Announce 15-Year Power Purchase Agreement for Renewables in France

With increasing speed, India is transitioning in terms of its energy. A central component to India’s transition is natural gas. Natural gas is a clean solution for the industry, the kitchen, and transport, assisting in cleaning the air across India.

The European Investment Bank (EIB) and Santander have recently entered a significant counter-guarantee agreement valued at €500 million. This agreement will enable Santander to build up a €1 billion bank guarantee portfolio. The scheme will unlock €8 billion in investments, supporting companies across Europe involved in manufacturing wind energy equipment.

Expanding Wind Energy Investment

The guarantees will support investments in manufacturing wind energy equipment, grid connections, and key components like turbines, cables, and transformers. These guarantees will allow manufacturers to receive advance payments and provide performance guarantees when starting new wind energy projects. Additionally, the scheme will help manufacturers pay suppliers in advance, facilitating the timely supply of essential components for wind farms and related infrastructure.

Leveraging Funds for Growth

The counter-guarantee provided by the EIB will trigger further investments from other financial institutions. This leverage effect will speed up wind energy production, attract investments, and contribute to the transition to cleaner energy. Launched in 2023, the EIB’s €5 billion wind power package aims to boost financing and achieve 32GW capacity.

The European Commission launched this agreement as part of the Wind Power Package to speed up the EU’s net-zero transition.

Gemma Feliciani, EIB Director of Financial Institutions, said, “Wind energy will play a significant role in achieving the EU’s renewable-energy target. To unveil its full potential, the EIB together with Santander is putting in place de-risking instruments that will allow manufacturers to overcome some of the challenges impacting the sector such as supply chain disruptions, high costs or intense international competition.”

She added, “This new framework sponsored by the EIB wind package will accelerate the energy transition in Europe while strengthening its industrial competitiveness and strategic autonomy.”

Also read: EIB Grants PLN 225 Million for Kielce’s Sustainable Urban Development

Strengthening EU’s Industrial Competitiveness

Ricardo Gamazo from Santander’s Global Trade Finance team mentioned that the program had been well-received by clients in the wind equipment industry, who were facing significant order backlogs due to the growing demand for energy transition. He explained that backlogs created a high demand for guarantees, and the added capacity would help secure market credit lines. Gamazo stated that the agreement was another crucial step in strengthening energy security for the EU in a sustainable manner.

The €500 million counter-guarantee agreement between EIB and Santander represents a major step in advancing Europe’s wind energy sector. The partnership boosts financing and competitiveness, accelerating wind energy growth to help the EU meet renewable goals and secure energy.