Before an audience of American investors in New York on October 2, who represent 47% of its shareholders, the TotalEnergies executive committee assured its audience of “ more energy » et « more free cash flow ” more ” fewer emissions ». Oil but especially LNG, indicated the boss of the French group who never fears going against climate injunctions.
« More energy, less emissions, more free cash flow », reassured the French oil and gas group TotalEnergies, executive committee in force, in front of an audience of investors in New York on October 2. The French group is listed there (but according to stock market regulations specific to foreign companies) in addition to Paris, and American investors indeed represent 47% of its shareholders.
TotalEnergies announced that it would increase its overall energy production (oil, gas, electricity, bioenergy) by 4% per year until 2030 while reducing emissions from its operations by 40% on scope 1 and 2 in 2030 compared to 2015, and 80% on methane in 2030 compared to 2020.
While it has just launched a large-scale oil project worth more than $10 billion in Suriname, the French major has raised its forecast for growth in hydrocarbon production to around 3% per year until 2030, until now fixed between 2 and 3%. And more “ over the next two years 2025 and 2026 », We can also read in the press release. But growth will be mostly »LNG, it is specified. It is based on six oil and gas projects which should be launched this year: two in Brazil, Suriname, Angola, Oman and Nigeria.
Demand for oil on the rise
CEO Patrick Pouyanné has never hidden it: disconnecting from fossil fuels is not sustainable. “ If I want to invest in system B [les énergies décarbonnées, NDLR], I have to get the money from somewhere (…) so we continue to invest in system A [les hydrocarbures, NDLR] », He explained on April 29 to senators who were hearing him as part of a commission on the coherence of the group’s activities with France’s climate commitments.
In front of investors, he highlighted the natural decline of oil fields and the increase in global demand for oil [d’un peu moins de 1 million de barils par jour, NDLR]. « For the moment, we do not see any real impact from the penetration of low-carbon technologies ». LOrganization of the Petroleum Exporting Countries also sees oil demand significantly increase by 17% from 2023 to 2050.
LNG non-negotiable
In the French boss’s vision, shared by other energy groups, gas, which emits less CO2 than oil and coal, will make it possible to make the transition to renewable energies, whatever the International Energy Agency thinks. energy, whose carbon neutrality scenario in 2050 bans all new projects of fossil origin, including LNG.
The company is also banking on gas-electricity integration in addition to intermittent renewables. In electricity, it is aiming for a target of more than 100 TWh of production in 2030, 70% renewable and 30% from gas power plants.
« Thanks to this transition strategy, the average carbon content of energy sales will fall by 25% in 2030 compared to 2015. », assures the group.
« In 2024, the group de-risked the exposure of its LNG sales portfolio to spot prices by signing long-term contracts, mainly indexed to Brent, and strengthened its upstream gas integration in the United States thanks to two acquisitions of assets in low costs », Indicates the manager. TotalEnergies has signed long-term LNG supply agreements for 4 Mt this year.
At the same time, it continues to invest in capacity. In recent days, it announced an agreement with Lewis Energy Group to acquire a 45% stake in the producing gas assets that the American group owns and operates in the Eagle Ford basin, Texas.
With more than 10 Mt exported in 2023, the French company considers itself the leading exporter of American LNG, thanks to its 16.6% stake in the Cameron LNG liquefaction plant (Louisiana) as well as its LNG contracts. long term purchase. Its export capacity should reach 15 Mt/year by 2030.
Investments between $16 and $18 billion per year
The group has confirmed net investments of between $16 and $18 billion per year over the 2025-30 period, including around $5 billion dedicated to low-carbon energies. But by reserving a pocket of flexibility of $2 billion to protect against price drops.
The price of Brent fell below $70 last month but has risen again in recent days with renewed tensions in the Middle East. Until then, the price of a barrel was weighed down by the prospect of an increase in production from Saudi Arabia and seven other members of the OPEC+ agreement (Organization of the Petroleum Exporting Countries and their allies) as well as by the persistent weakness in Chinese demand, the driving force behind oil consumption.
Adeline Descamps
TotalEnergies won by the very trendy practice of buying back its shares
The French group also announced this Wednesday, October 2, share buybacks for $8 billion in 2024 and the same amount in 2025, this practice that the Barnier government could tax in its race to bail out public accounts. The technique, which leads to reducing the number of securities in circulation on the market to increase their value, is criticized, because the easy money thus obtained does not always serve the development of the company (employment, innovation, etc.).
A.D.
Related News :