French energy company, Total, has signed a five-year agreement with Indian steel company, ArcelorMittal Nippon Steel (AM/NS), for the supply of up to 500,000 tonnes of liquefied natural gas (LNG) per year until 2026.

Total, the world’s second largest privately owned LNG player, will source the LNG from its global portfolio. Offloading will take place either in Dahej or Hazira LNG Terminal on the West Coast of India.

The LNG will be used to run AMNS-owned steel and power plants located in Hazira, Gujarat state.

Thomas Maurisse, Senior Vice-President of LNG at Total, said, “We are pleased to partner with AMNS and to supply the growing industrial LNG demand in India. A country that aims to more than double the share of natural gas in its energy mix by 2030 compared to today.”

With the Indian steel industry still heavily reliant on coal, the supply of LNG is hoped to contribute to AMNS’s goal of reducing carbon emissions, as well as being in line with Total’s low-carbon strategies.