Total’s LNG Investments on the Rise

The French oil giant Total is expanding its portfolio with LNG investments. The production of the cleanest burning fossil fuel is projected to increase from 250 mt/yr to around 630 mt/yr by 2050, reports DNV GL. Total is one of the leading companies taking advantage of this vast growth by broadening its reach in the LNG sector.

US LNG Investments

In addition to the original $207M investment, Total has agreed to make an equity investment of $500M in Tellurian’s Driftwood LNG export project in Lake Charles. The company will offtake as much as 2.5 mta of LNG from the project.

Driftwood LNG recently received the approval of the Federal Energy Regulatory Commission to start construction. With Total secured as an offtaker, it is a good sign that the project will reach the final investment decision, planned for the first half of 2019 for phase 1. If all goes according to plan, Driftwood LNG production will begin in 2023 and will be fully operational in 2026, producing 27.6 mtpa of LNG.

The sales and purchase agreement between the two companies confirms a free-on-board basis purchase of LNG for a minimum of 15 years. It is set at a price based on Platts Japan Korea Marker – a first for Total. The company believes that this Asian benchmark for spot cargoes makes the most sense for its global portfolio as it is developing rapidly with the high LNG demand in the Asian market.

Novatek LNG Investments

In another recent move, the energy major Total announced its intention to buy a 10% stake in Novatek-led LNG terminal projects in Murmansk and the Kamchatka Peninsula along with investing into Arctic LNG-2.

Russia’s biggest independent gas producer Novatek has already proved that Arctic conditions are not a barrier to the production and liquefaction of natural gas at competitive prices and the receding ice allows to ship the fuel to markets worldwide. The terminal in Murmansk with annual transshipments of 20 million tons of LNG and the Kamchatka hub with a capacity of 40 million tons of LNG per year will ensure an even bigger reach.

Total is set to benefit greatly from the Arctic LNG-2 project as it owns 19.4% of Novatek and has agreed on an opportunity to buy from 10% to 15% in all future company’s LNG projects on the Yamal and Gydan peninsulas.

Other Investments

It would be remiss not to acknowledge that LNG is not the only pursuit Total is investing in. After the tragic fire of Notre-Dame, the French company has pledged a $112.98M contribution to the reconstruction of the cathedral.

Joining other Frech industry companies in an effort to help with the repairs, Total is giving back to the community, showing dedication not only to the expansion to its energy portfolio but also revealing its strong national values and social responsibility.

What other companies have LNG investments planned for the near future? Find out from industry experts and senior executives representing major energy companies at the 4th International LNG Summit in Oslo on June 18th. Secure your tickets at www.lngsummit.org.