TotalEnergies purchases more gas assets in Texas for value chain boost

TotalEnergies, a French company, has expanded its natural gas footprint into the United States by announcing a deal with Lewis Energy Group. The two companies have agreed to buy a 45% share in certain dry gas producing assets located in the Eagle Ford Basin in Texas.

Why it's important

TotalEnergies is one of the largest exporters of U.S. made Liquified Natural Gas. This gas is in high demand, as countries such as Europe and other parts of the world are moving away from cheap Russian gas and coal.

KEY QUOTE (S) "This acquisition strengthens our position as an upstream gas supplier in the United States and adds to TotalEnergies' integrated LNG position by providing a low-cost upstream supply of gas," said Nicolas Terraz.

CONTEXT

This is the second non-operated shale assets acquisition in Southwest Texas for this year.

By the Numbers

By 2028, the assets added could reach a production gross of 400 million cubic feet (Mcf/d). TotalEnergies expects its U.S. export capacity to reach 15 millions tons per annum (Mt/yr) by 2030.

(source: Reuters)