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TotalEnergies (TTE) Partners With QatarEnergy on NFE Project
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TotalEnergies (TTE - Free Report) announced that it has been awarded a 25% interest in the North Field East (“NFE”) liquefied natural gas (LNG) project in Qatar. QatarEnergy will control the remaining 75% interest in this massive LNG project. This project will increase Qatar’s total LNG export capacity from 77 million tons per annum (Mtpa) to around 110 Mtpa by 2027.
TotalEnergies selection in this prestigious project was primarily due to its presence in the entire LNG value chain, starting from production, liquefaction, regasification and transport. TotalEnergies’ large fleet of LNG tankers, and reserved capacity in several regasification terminals make it a perfect partner for the project.
TotalEnergies is Assisting Qatar’s Clean Energy Transition
The State of Qatar’s National Vision 2030 aims to cut down carbon emission significantly by 2030. Reduction in emission levels will be achieved by using clean source of energy and renewable sources to produce electricity.
TotalEnergies is a key player and will be partners in both, the LNG project and Qatar’s Al Kharsaah Solar PV IPP Project. The solar project, when completed, will have a capacity to produce 800 megawatt peak (MWp) clean electricity. The NFE project will be connected to Qatar's electrical grid and assist in clean energy production.
TotalEnergies’ Clean Energy Vision
TotalEnergies targets to achieve zero emissions by 2050 and is taking necessary measures to attain the same. TTE is making systematic investments in operations to achieve clean energy transition goals. This new joint venture is in sync with TotalEnergies’ long-term goal to produce a substantial volume of electricity from renewable sources.
TTE is making investments to increase the production of LNG across the globe and develop the infrastructure needed for LNG production and transport. TotalEnergies has set LNG sales target of 50 million metric tons by 2025. The partnership in the NFE project will contribute toward its LNG sales target.
Al Kharsaah solar project will contribute to TTE’s goal of deploying 25 gigawatt (“GW”) of renewables by 2025. TotalEnergies plans to have more than 16 GW of renewable gross capacity in operation by the end of 2022.
LNG’s Importance Rising Globally
Awareness across the globe relating to the ill effects of carbon emission has resulted in increasing usage of clean energy sources and renewables to produce energy. Natural gas, due to its clean burning nature, is a very popular choice of clean fuel to produce electricity and usage in various industries. It is difficult to transport large volumes of natural gas to a very long distance, so LNG usage is a perfect solution for this problem.
Given the increasing popularity of LNG across the globe, energy majors have been focused on producing more LNG and make arrangements for its transportation from the area of production to the region of consumption. Apart from TotalEnergies, ExxonMobil (XOM - Free Report) , Chevron Corporation (CVX - Free Report) and BP plc (BP - Free Report) are a few major producers of LNG across the globe.
Per International Energy Agency (“IEA”), global LNG trade is expected to reach 585 billion cubic meters per year by 2025, an increase of 21% compared to 2019. The Emerging Asian markets remain the driving force behind the expansion of LNG imports, led by China and India.
So, ExxonMobil, Chevron, BP and TotalEnergies among others are well poised to benefit from the rising demand of LNG. The Zacks Consensus Estimate for 2022 earnings per share for ExxonMobil, Chevron, BP and TotalEnergies has moved up by 14.8%, 15.2%, 19.4% and 12.3%, respectively, in the past 60 days.
Price Performance
In the past three months, TotalEnergies’ shares have risen 16.7% compared with the industry’s rally of 25.4%.
Image: Bigstock
TotalEnergies (TTE) Partners With QatarEnergy on NFE Project
TotalEnergies (TTE - Free Report) announced that it has been awarded a 25% interest in the North Field East (“NFE”) liquefied natural gas (LNG) project in Qatar. QatarEnergy will control the remaining 75% interest in this massive LNG project. This project will increase Qatar’s total LNG export capacity from 77 million tons per annum (Mtpa) to around 110 Mtpa by 2027.
TotalEnergies selection in this prestigious project was primarily due to its presence in the entire LNG value chain, starting from production, liquefaction, regasification and transport. TotalEnergies’ large fleet of LNG tankers, and reserved capacity in several regasification terminals make it a perfect partner for the project.
TotalEnergies is Assisting Qatar’s Clean Energy Transition
The State of Qatar’s National Vision 2030 aims to cut down carbon emission significantly by 2030. Reduction in emission levels will be achieved by using clean source of energy and renewable sources to produce electricity.
TotalEnergies is a key player and will be partners in both, the LNG project and Qatar’s Al Kharsaah Solar PV IPP Project. The solar project, when completed, will have a capacity to produce 800 megawatt peak (MWp) clean electricity. The NFE project will be connected to Qatar's electrical grid and assist in clean energy production.
TotalEnergies’ Clean Energy Vision
TotalEnergies targets to achieve zero emissions by 2050 and is taking necessary measures to attain the same. TTE is making systematic investments in operations to achieve clean energy transition goals. This new joint venture is in sync with TotalEnergies’ long-term goal to produce a substantial volume of electricity from renewable sources.
TTE is making investments to increase the production of LNG across the globe and develop the infrastructure needed for LNG production and transport. TotalEnergies has set LNG sales target of 50 million metric tons by 2025. The partnership in the NFE project will contribute toward its LNG sales target.
Al Kharsaah solar project will contribute to TTE’s goal of deploying 25 gigawatt (“GW”) of renewables by 2025. TotalEnergies plans to have more than 16 GW of renewable gross capacity in operation by the end of 2022.
LNG’s Importance Rising Globally
Awareness across the globe relating to the ill effects of carbon emission has resulted in increasing usage of clean energy sources and renewables to produce energy. Natural gas, due to its clean burning nature, is a very popular choice of clean fuel to produce electricity and usage in various industries. It is difficult to transport large volumes of natural gas to a very long distance, so LNG usage is a perfect solution for this problem.
Given the increasing popularity of LNG across the globe, energy majors have been focused on producing more LNG and make arrangements for its transportation from the area of production to the region of consumption. Apart from TotalEnergies, ExxonMobil (XOM - Free Report) , Chevron Corporation (CVX - Free Report) and BP plc (BP - Free Report) are a few major producers of LNG across the globe.
Per International Energy Agency (“IEA”), global LNG trade is expected to reach 585 billion cubic meters per year by 2025, an increase of 21% compared to 2019. The Emerging Asian markets remain the driving force behind the expansion of LNG imports, led by China and India.
So, ExxonMobil, Chevron, BP and TotalEnergies among others are well poised to benefit from the rising demand of LNG. The Zacks Consensus Estimate for 2022 earnings per share for ExxonMobil, Chevron, BP and TotalEnergies has moved up by 14.8%, 15.2%, 19.4% and 12.3%, respectively, in the past 60 days.
Price Performance
In the past three months, TotalEnergies’ shares have risen 16.7% compared with the industry’s rally of 25.4%.
Image Source: Zacks Investment Research
Zacks Rank
TotalEnergies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.