TotalEnergies Eyes Growth With Texas Project But Cites Papua LNG Delay
Portfolio Pulse from Lekha Gupta
TotalEnergies SE (NYSE:TTE) has acquired a 20% stake in the Dorado leases in the Eagle Ford shale gas domain from Lewis Energy Group, increasing its natural gas production capacity in Texas. This acquisition, making TotalEnergies a partner with EOG Resources, Inc. (NYSE:EOG) which holds the remaining 80%, is expected to boost TotalEnergies' net U.S. natural gas production by 50 million cubic feet a day (Mcf/d) in 2024, with potential for an additional 50 Mcf/d by 2028. TotalEnergies, the leading exporter of U.S. LNG in 2023, aims to expand its LNG export capacity to 15 Mt per year by 2030 with the Rio Grande LNG project. However, the company also announced a delay in the final investment decision (FID) for a new LNG project in Papua New Guinea to 2025.
April 08, 2024 | 10:30 am
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POSITIVE IMPACT
EOG Resources, Inc. remains a major player in the Eagle Ford shale gas domain, holding an 80% stake in the Dorado leases, now in partnership with TotalEnergies SE.
EOG Resources' partnership with TotalEnergies in the Dorado leases reinforces its significant presence in the Eagle Ford shale gas domain. This collaboration could potentially lead to further operational efficiencies and production increases.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
TotalEnergies SE's acquisition of a stake in the Dorado leases and its plans for LNG export capacity expansion highlight its strategic growth in the U.S. LNG market, despite a delay in the Papua LNG project.
The acquisition and subsequent production increase, along with the strategic expansion in LNG export capacity, are positive developments for TotalEnergies, indicating growth potential. The delay in the Papua LNG project is a minor setback but does not significantly impact the company's overall growth trajectory.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90