French energy giant TotalEnergies has signed a heads of agreement (HoA) with Energia Natural Dominicana (ENADOM) that will see the company supply the joint venture between AES Dominicana and Energas with 400,000 tonnes per year (tpy) of LNG, the supermajor announced on April 15.

The supply deal is set to commence in mid-2027 and will run for 15 years. Under the terms of the contract, the price will be indexed to Henry Hub.

The Dominican joint venture will use the super-chilled fuel to power a 470-MW combined-cycle power plant, which is currently being built near the town of Boca Chica, about 25 km east of the capital Santo Domingo.

The power plant’s construction has been prioritised by the Dominican government as a key piece in the country’s decarbonisation strategy. The facility will help reduce the country’s reliance on coal and fuel oil and use natural gas that has a lower carbon intensity.

“We are pleased to have signed this agreement to answer, alongside AES and its partners, the energy needs of the Dominican Republic. This new contract underscores TotalEnergies' leadership in the LNG sector and our commitment to supporting the island's energy transition. It will be a natural outlet for our US LNG supply which will progressively increase,” TotalEnergies’ senior vice president LNG Gregory Joffroy said in a statement.

For TotalEnergies, it marks the second long-term supply deal it has secured in as many months. In mid-February during India Energy Week in New Delhi, the French supermajor also inked a 10-year sale and purchase agreement (SPA) with India’s Gujarat State Petroleum (GSPC) to also supply 400,000 tpy.

The contract will begin in 2026 and will see the French energy giant ship six cargoes of the super-chilled fuel annually to India’s west coast import terminals.

TotalEnergies is the world’s third largest LNG trader, boasting a global portfolio of 40mn tpy in 2024.