TotalEnergies CEO Patrick Pouyanne has unveiled plans to expand the company’s investment in the US liquefied natural gas (LNG) market over the next decade.
This move aims to strengthen TotalEnergies’ position as a leading exporter of LNG produced in the US.
Pouyanne downplayed concerns that increased exports may increase US gas prices, expressing confidence in the US administration’s pragmatic energy policies, reported Reuters.
He highlighted the US administration’s focus on job creation and economic growth, stating: “What they want is very simple: jobs and billions of dollars in the US.”
Pouyanne has steered TotalEnergies away from Russia after assuming the CEO role in 2014, concentrating instead on low-cost oil and gas production in areas such as the Middle East, Brazil and the US, while also broadening the company’s involvement in electricity and renewable energy.
TotalEnergies reported $18.3bn in earnings last year, with strong LNG trading offsetting weaker oil refining profits.
Unlike competitors such as Chevron, ExxonMobil and BP, which have invested heavily in shale oil and gas, TotalEnergies has focused on LNG projects, securing access to more than ten million tonnes (mt) of US LNG annually for global distribution, the report said.
Pouyanne was quoted by the news agency as saying: “We have enough to grow the US position for the next decade, and I am sure we will do it.”
He unveiled the company’s plans to invest in expansion projects at the Cameron and Rio Grande LNG facilities along the Gulf of Mexico, considering additional production facilities.
The US is projected to nearly double its LNG export capacity by the decade’s end.
While some economists warn of potential constraints on domestic supplies and higher energy bills, Pouyanne believes the US has sufficient gas reserves due to its vast shale resources.
He emphasised the need for pipeline infrastructure to connect gas supplies to coastal demand centres.
Pouyanne noted: “If you look at the history of the evolution of the US gas price, the spikes are more linked to the lack of infrastructure than the lack of resources.”
Europe has emerged as the primary buyer of US LNG following the loss of Russian supplies due to the Ukraine conflict.
According to the report, TotalEnergies has become a key supplier of US LNG to Europe while continuing to supply Russian LNG from the Yamal facility.
Pouyanne stated that TotalEnergies’ diverse LNG sourcing mitigates risks from geopolitical tensions.
“Fundamentally, it is a political game, because China’s purchase of US energy is quite limited – in fact, they purchase from portfolio companies like us. What we will do is take more LNG from Qatar or from Australia, and the US LNG we will send to other customers,” he added.
