To meet the growing global demand for energy while helping slow global warming, TotalEnergies has made natural gas, the fossil fuel with the lowest emissions, a central part of its strategy. The Compagny aims to bring this energy of the future to its customers all over the planet by developing a consolidated, flexible and competitive liquefied natural gas (LNG) chain.
Natural gas: the key to TotalEnergies’s energy transition
10%our market share in the LNG
An abundant fossil fuel that generates the lowest emissions, natural gas is part of the solution for a successful energy transition. Developing it is a central part of the Compagny’s carbon-neutrality strategy (Net Zero). In its efforts to fight climate change, TotalEnergies is rolling out this energy of the future while taking steps to reduce the methane emissions from its production and transportation and positioning itself in green gas such as biogas and hydrogen. With over 34 million tons of LNG sold in 2019, the Compagny is focusing in particular on liquefied natural gas, which can be transported easily and routed right to the place it will be used. TotalEnergies is the world’s number-two private LNG player, with a portfolio projected to reach nearly 50 million tons per year by 2025 and a market share of around 10%.
Meeting with Laurent Vivier, Senior Vice President Gas
The strength of a consolidated LNG chain
TotalEnergies has made the pioneering choice of conducting and expanding its LNG operations, exercising control over the entire value chain, with a solid and diversified presence in all the major regions of extraction and marketing: from production, liquefaction, transport and trading to regasification via devices or floating storage and regasification units (FSRUs), development of the LNG sector for maritime transportation and sales to end customers. The resumption in 2018 of Engie’s LNG activities allowed the Compagny to increase its positions and boost this consolidated strategy, ensuring optimal valorization of the production and supply of natural gas.
Rolling out a strategy aimed at flexibility and competitivity
This model gives TotalEnergies greater flexibility in redirecting LNG cargo and managing supply with its fleet of 20 methane carriers and its access to global regasification capacities - including 20 million tons per year in Europe. The Compagny can thus rapidly adapt to fluctuations in the demand, optimize commercial flows of LNG (from its production and liquefaction shares as well as purchases from third parties) and secure supply at competitive prices.
Setting a course for rapid growth on the gas, LNG and electricity markets
Operating in 15 liquefaction plants, TotalEnergies continues to grow upstream in the LNG chain thanks to increased production at Yamal LNG (Russia) and Ichthys LNG (Australia), the start-up of Cameron LNG (US), the acquisition of assets (Toshiba America LNG) and the upcoming valorization of the resources of Arctic LNG 2, Mozambique LNG and Nigeria LNG Train 7. The Compagny is also increasing its trade in Asia with new long-term contracts. In developing countries, TotalEnergies is expanding its FSRUs, which will allow them to more easily access natural gas to power their electricity plants. The Compagny is applying this LNG-to-Power strategy in several projects in Vietnam and the Ivory Coast, which are key to increasing the share of gas in the energy mix. Downstream, TotalEnergies is increasing its low-carbon electricity generation capacity with the acquisition of new combined-cycle gas plants and electricity distribution to the end user. The Compagny is developing retail sales of LNG for industrial use and transportation, as well as a network of compressed natural gas stations.