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TOTAL (TOT) Partners Siemens to Lower LNG-Related Emissions

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TOTAL SE (TOT - Free Report) announced that it has signed a Technical Collaboration Agreement with Siemens Energy to provide sustainable solutions for reduction of emissions related to liquefied natural gas (LNG) production. TOTAL and Siemens will concentrate on natural gas liquefaction facilities and associated power generation as well as find out ways to cut emissions.

Siemens, with its advanced energy technology, and TOTAL, with its global presence in the entire LNG chain, will jointly lower emissions and promote the usage of clean LNG. 

TOTAL’s Presence in Global LNG Market

The company is among the largest global LNG operators and has been expanding LNG footprint through organic means, acquisitions, mergers, partnerships and collaborations. Increasing awareness about lowering emissions is boosting LNG demand across the globe. TOTAL, with its wide presence in the LNG market, is benefiting from the rising demand and trying to lower emissions from the production process. The company targets to produce 50 million metric tonnes per annum (mtpa) of LNG by 2025.

TOTAL’s LNG sales for 2020 were up 12% year over year, courtesy of the start-up of three trains at Cameron LNG in the United States, ramp up of Yamal LNG in Russia and Ichthys LNG in Australia as well as increase in trading activities.

The company  expects LNG sales to improve 10% in 2021 from 2020 levels, primarily due to the ramp up of Cameron LNG.  We expect the roll out of COVID-19 vaccines in 2021 and gradual restart of economic activities to increase LNG demand.

TOTAL’s Net-Zero Emission Goal

The company has an ambition of achieving net-zero emissions by 2050 and has been taking initiatives in this regard. It is gradually building the clean electricity generation portfolio. The acquisition of SunPower Corporation (SPWR - Free Report) has enabled the company to expand solar operations since 2011. TOTAL now plans to scale up renewable generation capacity to 25 Gigawatts (GW) by 2025 and further to 100 GW by 2030.

Rising production of LNG will assist the company to achieve the zero-emission target. TOTAL benefits from its strong and diversified positions throughout the LNG value chain, gas production and liquefaction, LNG transportation and trading along with contribution to the development of the LNG industry for maritime transport.

Focus on Clean Energy

Increasing emphasis on emission reduction and generation of more electricity from clean alternate sources of energy are becoming popular on a global scale. Usage of natural gas and renewable source of energy are likely to increase on a global scale.

Given growth opportunities in the renewable space, oil and gas companies like ExxonMobil (XOM - Free Report) and Chevron Corporation (CVX - Free Report) , among others, are also investing heavily in the renewable energy space.

Zacks Rank & Price Performance

TOTAL currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 12 months, shares of TOTAL have outperformed the industry.

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