TotalEnergies has entered into a strategic agreement with Continental Resources to acquire 49% of its natural gas assets in the Anadarko Basin, one of the most important gas regions in the United States.
What is the significance of this agreement for TotalEnergies?
For TotalEnergies, the acquired assets represent a reliable and low-cost supply of approximately 150 million cubic feet per day (MMscfd) according to company estimates. They will also enable the company’s integration into the LNG value chain in the market, as these assets are well connected to Henry Hub, the main pricing benchmark for LNG in the US. gas pricing benchmark in the U.S.
By controlling more gas production in the U.S., TotalEnergies can strengthen the security of energy supply for its customers in Europe, where it already has access to more than 20 Mt/y of regasification capacity, and in Asia, where it has just signed a large supply contract with supply contract with Korea’s KOGAS .
Commitment to energy transition
TotalEnergies is the the world’s third largest LNG player and its plan is for natural gas to account for about 50% of its sales mix by 2030, which they plan to achieve by investing $5 billion annually in low-carbon energy by that year. The Anadarko Basin agreement provides the cash flow and stability for the company to finance the replacement of more polluting fuels such as coal.
Source: TotalEnergies.
