“We need both oil and gas and a [énergie] low-carbon to meet demand,” said the group’s CEO, Patrick Pouyanné, on Wednesday evening during a conference with investors, adding that global energy demand should stand at 1.5% per year. .
He also anticipates an increase in global LNG consumption of 5-6% per year by the end of the decade.
The group plans to launch six major hydrocarbon projects this year.
More LNG
In addition, growth in TotalEnergies’ oil and gas production is expected to exceed 3% in 2025 and 2026 due to the start-up of projects in the Americas, the Middle East and Asia, Mr. Pouyanné stressed.
The CEO expects a new wave of liquefied natural gas (LNG) projects in 2027-2029 to increase market capacity by “20 million tonnes per year, or more or less 30%” over the three years .
“The lesson of the past is that every time you have new LNG capacity, prices go down and that drives demand, particularly in Asia,” he added.
To reduce its exposure to the volatility of LNG spot prices, TotalEnergies signs medium and long-term contracts mainly indexed on Brent oil instead of European TTF or American Henry Hub gas, explained Stéphane Michel, director of the gas branch, renewable energies and electricity of the company.
By the end of the decade, the major plans to buy almost all of its LNG indexed to the Henry Hub and sell it indexed to Brent to avoid exposure to gas prices, he added. .
The group signed “more than 4 Mt [5,5 milliards de mètres cubes] of long-term contracts in Asia this year, mainly indexed to Brent, (and will still sign) a few more,” he said.
Electricity
TotalEnergies anticipates an increase in its total energy production, including electricity, of 4% per year by 2030.
The energy company is targeting 35 GW of renewable capacity next year and 100 GW by the end of the decade, compared to 24 GW currently, Mr. Michel said.
The group’s electricity production should exceed 100 TWh/year by 2030, including 70% from renewable energies and around 30% from gas power plants.
Around a third of the net investments planned for 2025-2030, or EUR 4.5 billion out of EUR 14.5-16.3 billion, will be devoted to “low-carbon” energies, TotalEnergies said.
Related News :