TotalEnergies SE TTE announced the acquisition of the 20% stake held by Lewis Energy Group in the Dorado leases managed by EOG Resources, Inc.EOG (80%) in Eagle Ford’s shale gas business.
This move is expected to increase TotalEnergies’ natural gas production capacity in Texas and further strengthen its commercial integration into the U.S. liquefied natural gas (LNG) value chain.
Specifically, the acquisition will help the company increase its net U.S. natural gas production by 50 million cubic feet per day (Mcf/d) in 2024, with the potential for an additional 50 Mcf/d by 2028.
In 2023, TotalEnergies’ net U.S. natural gas production reached approximately 340 Mcf/d (450 Mcf/d technical production) and was the largest exporter of U.S. LNG.
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The company’s LNG export capacity is expected to reach 15 million tonnes per year by 2030, following the start-up of the first phase of the Rio Grande LNG project in Texas, which is currently under construction.
In addition to this, the French oil and gas giant revealed that a new LNG project planned in Papua New Guinea is expected to continue working with contractors to secure commercially viable EPC contracts and will require more work to reach a final investment decision (FID).
As a result, the company anticipates FID of the Papua LNG project to 2025.
Patrick Pouyanné, President and CEO of TotalEnergies and Prime Minister of Papua New Guinea, agreed that this slight delay will not affect the first works expected in the region in 2024.
Additionally, Patrick Pouyanné announced that TotalEnergies intends to drill the first deepwater exploratory well on the PPL 576 license in 2025.
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Price action: TTE shares were up 0.18% at $73.00 pre-market at last check on Monday.
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