TotalEnergies cautious about winter gas supplies

TotalEnergies cautious about winter gas supplies: limited storage capacity and high import costs raise concerns.

Share:

TotalEnergies approvisionnement gaz

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

TotalEnergies cautious about winter gas supplies. Company CEO Patrick Pouyanné answers the question of whether France could run out of gas next winter. Although he did not totally rule out this possibility on Saturday in Aix, he stressed the weakness of European storage capacities and the cost of imports.

Freezing seasons and gas supplies: an energy challenge for Europe

“As far as gas is concerned, yes, stocks will be full” in October, estimated the head of the oil and gas group during a round table discussion at the Rencontres économiques d’Aix-en-Provence. But if Europe has a cold winter,” he warned, “the Old Continent’s storage capacities will not be sufficient to meet the gas demand of European consumers throughout the season. This does not necessarily mean that Europeans will run out of gas, but the imports needed to meet demand will be expensive, warns Patrick Pouyanné. “Friendly prices don’t work in a supply and demand market,” he argued.

Europeans, who have become very fond of American liquefied natural gas (LNG) since Russian supplies were cut off, are also dependent on the political context in the USA – the next presidential election is scheduled for the end of 2024. French Finance Minister Bruno Le Maire was more reassuring.

“Today, there’s no need to worry about gas storage and the gas situation in France or Europe,” he said. “We must of course remain vigilant,” he added. “We need access to LNG to face the next winter without difficulty,” he added.

US political uncertainties: fears for Europe’s energy future

Patrick Pouyanné expressed concern, however, if the US presidential election at the end of 2024 was won by the Republicans. Currently in opposition to Democratic President Joe Biden, “if the Republicans decide to stop (LNG) exports, there is a systemic risk”, he judged.

For Engie, France’s main natural gas supplier, CEO Catherine MacGregor said she was “rather serene” about security of supply next winter, thanks to efforts to reduce consumption and new import sources. “But we’re still going to have a very volatile system over the next few years,” she added.

Energy security in France: optimism for electricity supply and hydropower

As far as electricity is concerned – for which France is less dependent on foreign suppliers thanks to its 56 nuclear reactors – EDF CEO Luc Rémont also expressed his optimism in Aix, after a winter of 2022/23 during which the authorities were preparing for possible blackouts due to the record number of reactors shut down for repairs.

“Production is picking up. At this stage, we’re in a position to say that we’ll face next winter with confidence”, he said. Another reason for satisfaction is that “we’re starting the summer with full dams”, which should enable us to produce more hydroelectricity than last year, when drought restricted hydroelectric production.

GTT has been selected by Samsung Heavy Industries to design cryogenic tanks for a floating natural gas liquefaction unit, scheduled for deployment at an offshore site in Africa.
A consortium led by BlackRock is in talks to raise up to $10.3 billion to finance a gas infrastructure deal with Aramco, including a dual-tranche loan structure and potential sukuk issuance.
TotalEnergies commits to Train 4 of the Rio Grande LNG project in Texas, consolidating its position in liquefied natural gas with a 10% direct stake and a 1.5 Mtpa offtake agreement.
US producer EQT has secured a twenty-year liquefied natural gas supply contract with Commonwealth LNG, tied to a Gulf Coast terminal under development.
The Chief Executive Officer of TotalEnergies said that NextDecade would formalise on Tuesday a final investment decision for a new liquefaction unit under the Rio Grande LNG project in the United States.
Monkey Island LNG has awarded McDermott the design of a gas terminal with a potential capacity of 26 MTPA, using a modular format to increase on-site output density and reduce execution risks.
The Voskhod and Zarya vessels, targeted by Western sanctions, departed China’s Beihai terminal after potentially offloading liquefied natural gas from the Arctic LNG 2 project.
ADNOC Gas will join the FTSE Emerging Index on September 22, potentially unlocking up to $250mn in liquidity, according to market projections.
Norwegian company BlueNord has revised downward its production forecasts for the Tyra gas field for the third quarter, following unplanned outages and more impactful maintenance than anticipated.
Monkey Island LNG adopts ConocoPhillips' Optimized Cascade® process for its 26 MTPA terminal in Louisiana, establishing a technology partnership focused on operational efficiency and competitive gas export pricing.
NextDecade has signed a liquefied natural gas supply agreement with EQT for 1.5 million tonnes annually from Rio Grande LNG Train 5, pending a final investment decision.
Sawgrass LNG & Power has renewed its liquefied natural gas supply agreement with state-owned BNECL, consolidating a commercial cooperation that began in 2016.
Gazprom and China National Petroleum Corporation have signed a binding memorandum to build the Power of Siberia 2 pipeline, set to deliver 50 bcm of Russian gas per year to China via Mongolia.
Permex Petroleum signed a $3 million purchase option on oil and gas assets in Texas to support a strategy combining energy production and Bitcoin mining.
Enbridge announces the implementation of two major natural gas transmission projects aimed at strengthening regional supply and supporting the LNG market.
Commonwealth LNG’s Louisiana liquefied natural gas project clears a decisive regulatory step with final approval from the U.S. Department of Energy for exports to non-free trade agreement countries.
The Indonesian government confirmed the delivery of nine to ten liquefied natural gas cargoes for domestic demand in September, without affecting long-term export commitments.
The Egyptian government signs four exploration agreements for ten gas wells, allocating $343mn to limit the impact of the rapid decline in national production.
Hungary has imported over 5 billion cubic metres of Russian natural gas since January via TurkStream, under its long-term agreements with Gazprom, thereby supporting its national energy infrastructure.
U.S. regulators have approved two major milestones for Rio Grande LNG and Commonwealth LNG, clarifying their investment decision timelines and reinforcing the country’s role in expanding global liquefaction capacity.

Log in to read this article

You'll also have access to a selection of our best content.