The Shareholders' Newsletter SN #72

Ladislas Paszkiewicz,
Country Chair,
United States

This summer, TotalEnergies announced that it was strengthening its position in LNG in the USA by partnering with GIP and NextDecade on the development of a new project. Can you tell us a bit more about that? 

Ladislas Paszkiewicz: The Company signed a frame agreement with US company NextDecade, to take part in the development of the Rio Grande LNG project, a natural gas liquefaction plant in Texas. TotalEnergies shall off take 5.4 Mtpa of LNG for 20 years, which brings the Company’s US LNG export capacity to more than 15 Mtpa by 2030. Alongside that, a carbon capture and storage project (CCS) is being planned by the operator to reduce the emissions generated by the project. It’s very good news, as it reinforces our role as the world’s leading US LNG exporter. The LNG will contribute to ensuring Europe's security of gas supply, and to provide our Asian customers with an alternative fuel to coal. 

What is TotalEnergies’ current LNG portfolio in the United States?

L. P.: TotalEnergies is present in particular in gas liquefaction in the US, through its 16.6% equity share in the Cameron LNG plant in Louisiana, which enables us to export 4 million tons per year. In Baja-California in Mexico, TotalEnergies is a 16.6% shareholder in the Energia Costa Azul LNG liquefaction plant. Once construction is completed, TotalEnergies will be able to ship out 1.7 million tons per year of US gas to the Asian markets without having to go through the Panama Canal, which will reduce shipping costs and the carbon footprint.

We also have offtake contracts with the major LNG terminals in the United States, including Sabine Pass LNG, Freeport LNG and Corpus Christi. These strategic acquisitions and partnerships, ranked us as one of the leading US LNG exporters in 2022 with over 10 million tons, and has strengthened our ability to secure gas supply for Europe against the backdrop of a gas crisis.

How does our US LNG portfolio fit in with the Company’s strategy?

L.P.: With US LNG, just as we are doing in Qatar, we have confidently confirmed our position as the world’s third largest LNG player and a major player in the energy transition. For TotalEnergies, gas is the key energy in the transition. It enables us to continue providing the power the world requires today, in particular using natural gas as an alternative to coal, and to responsibly and sustainably catalyze the transition toward a low-carbon energy offer. Gas, because it emits half as much CO₂ as coal to generate electricity, has a key role in the Net Zero roadmaps for many coal-consuming countries. LNG is a crucial component in making extensive gas resources available to consumer countries worldwide. Flexible and controllable, it complements our intermittent, integrated power capacities to bridge the gaps during unpredictable weather episodes and variations in demand.