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TotalEnergies (TTE) Unveils Outlook, Focus on Clean Energy

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TotalEnergies SE (TTE - Free Report) announced its strategy and outlook, reaffirming the need for a balanced multi-energy strategy considering the developments in the oil, gas and electricity markets. Given the ongoing transition in the energy space, its focus is on renewable sources and producing low-emission Oil & Gas from its rich portfolio of assets spread across the globe.

TotalEnergies plans to increase its Oil & Gas production by 2-3% per year over the next five years, primarily from LNG, thanks to its rich, low-cost, low-emission upstream portfolio. TTE is developing a top-tier pipeline of LNG projects (Qatar North Field Expansion, Papua LNG, ECA LNG and Rio Grande in the U.S., Mozambique LNG) while leveraging its competitive advantage with leading positions in Europe regasification and U.S. exports.

Courtesy of its consistent performance, TotalEnergies expects to distribute about 44% of its Cash Flows from Operations (CFFO) in 2023 and increase shareholder distribution guidance to more than 40% of CFFO beyond 2023.

Clean Power Generation

TotalEnergies plans to expand its power generation to more than 100 TWh by 2030, investing $4 billion per year and increasing cash flow from $2 billion in 2023 to more than $4 billion by 2028, becoming net cash-flow positive.

It is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040. TTE is making strategic acquisitions to expand its renewable operations. It recently acquired Ombrea, a prime operator in the Agrivoltaics space, to expand its footprint in the Agrivoltaics business.

TotalEnergies aims to achieve net-zero emissions by 2050 and have a gross renewable power generation installed capacity of 19 gigawatts (GWs) as of July 2023. The company plans to expand its business to reach 35 GWs of gross production capacity from renewable sources and storage by 2025 and 100 GWs by 2030.

Renewable Energy is A Key Contributor

A transition in the energy space is evident, with industries now focusing on lowering emissions and planning to use energy generated from clean sources. Utilities are expanding clean energy generation portfolios. Since the potential in the renewable market is huge, it draws operators from the oil & energy space.

Along with TotalEnergies, other oil and gas companies like ExxonMobil Corporation (XOM - Free Report) , BP plc (BP - Free Report) and Chevron Corporation (CVX - Free Report) are also adopting measures to reduce emissions from operations.

To meet the growing demand for clean fuels, ExxonMobil has been working to reduce emissions by developing more efficient fuels. The company intends to invest billions of dollars in emission-reduction projects over the next few years. XOM has developed an ambitious roadmap to achieve net-zero Scope 1 and net-zero Scope 2 GHG emissions by 2030 for unconventionally operated assets.

BP has established an ambitious energy transition strategy to take advantage of the growing demand for sustainable energy. The company plans to reduce emissions by 30-35% from its operations by 2030.

CVX is making efforts to lower methane emissions. The company has adopted an upstream methane-intensity target of 2.0 kg CO2e/boe by 2028, which represents a 57% reduction from its 2016 baseline. It has reduced methane intensity by more than 50% and is actively working to end routine flaring by 2030.

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