TotalEnergies SE TTE announced that it has joined Abu Dhabi’s Ruwais liquefied natural gas (LNG) project. ADNOC, the national company, has 60% interest in the project, with TTE, Shell plc SHEL, BP plc BP and Mitsui holding 10% each.
Last year, at COP28, TotalEnergies and ADNOC pledged to lead the Oil & Gas Decarbonization Charter to lower the greenhouse gas emissions of the sector. TTE is putting this idea into effect with Ruwais LNG, one of the LNG facilities with the lowest carbon intensity in the world, enabling natural gas to reach its full potential as a transition fuel.
Key Details of the Project
The Ruwais LNG project, started by ADNOC in June 2024, is situated in Abu Dhabi's Al Ruwais Industrial City. Two liquefaction trains with a combined capacity of 9.6 million tons per year (Mtpa) are part of the project, which is anticipated to be launched in the second half of 2028.
The initiative sets the benchmark for cutting down on emissions. Its full-electric liquefaction trains will be supplied with clean power by the UAE’s grid, making it one of the world’s lowest-carbon-intensity LNG plants. The plant will also utilize the newest advancements to improve safety, increase efficiency and reduce emissions.
Focus of TotalEnergies in the LNG Chain
TTE benefits from an integrated position across the LNG value chain, including production, transportation, access to more than 20 Mtpa of regasification capacity in Europe, trading and LNG bunkering.
TotalEnergies’ global LNG portfolio was 44 Mtpa in 2023, owing to its interests in liquefaction plants in all geographies. The company continues to expand its LNG operation through acquisitions, partnerships and agreements. Its large fleet of LNG tankers and reserved capacity in several regasification terminals make it a perfect partner for the development of LNG projects globally.
TTE’s expanding LNG operation is in sync with its long-term ambition to increase the share of natural gas in its sales mix to approximately 50% by 2030, reduce carbon emissions and eliminate methane emissions associated with the gas value chain.
Demand for LNG is on the Rise
The Institute for Energy Economics and Financial Analysis has released a report indicating that the worldwide LNG market is about to experience an unparalleled surge of new liquefaction projects, starting late 2024.
This surge is expected to be the quickest expansion in the history of the global LNG sector, marking a 40% rise over a span of five years. The sector is poised to increase its liquefaction capacity nearly five times during 2025-2028 compared with the preceding four-year span.
Along with TTE, the rising demand for LNG will also boost the prospects of companies like Cheniere Energy LNG, Shell and BP, as these play a vital role in the supply of LNG worldwide. These companies are committed to ensuring that the world has access to a reliable and affordable source of energy as it transitions to a cleaner future.
The Zacks Consensus Estimate for Cheniere’s 2024 sales and EPS indicates a year-over-year decrease of 24.1% and 79.5%, respectively. The company delivered an average earnings surprise of 58.9% in the last four quarters.
SHEL’s long-term (three- to five-year) earnings growth rate is 4.64%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year increase of 10.6%.
BP’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year increase of 13.5%.
Price Performance
In the past six months, shares of TotalEnergies have risen 2.7% against the industry’s 0.5% decline.
Image Source: Zacks Investment Research
Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>BP p.l.c. (BP) : Free Stock Analysis Report
Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
