Reports related to this article:
Project(s): View 9 related projects in PECWeb
Plant(s): View 6 related plants in PECWeb
Released March 30, 2022 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--TotalEnergies SE (NYSE:TTE) (Courbevoie, France) isn't shy about taking advantage of the high-price, high-demand environment for oil and gas, with the multinational major raising its projected capital spending (capex) for 2022-25 by about US$1 billion, to between US$13 billion and US$16 billion. While about half of this amount will go toward maintaining TotalEnergies' oil and gas activities, the other half will be divided among its renewables, biofuels and natural gas businesses, the last of which will be heavily weighted toward liquefied natural gas (LNG). Industrial Info is tracking about US$43.5 billion worth of active projects from TotalEnergies worldwide, including about US$4 billion in the U.S.
Click on the image at right for a graph detailing the top 10 industrial sectors for TotalEnergies' active projects, by total investment value.
TotalEnergies is wrapping up construction of a US$1.8 billion ethane cracker at its complex in Port Arthur, Texas, with an ethylene production capacity of 1 million tons per year. Built in conjunction with Borealis AG (Vienna, Austria), the project was set to be fully completed this month, but TotalEnergies conceded "the commissioning phase has led to technical adjustments." Nonetheless, its startup is expected later this year.
The TotalEnergies-Borealis joint venture, which is called Bayport Polymers LLC, also is building a US$1 billion polyethylene unit downstream from the ethane cracker, at the Bayport site. It is expected to more than double Bayport's polyethylene production capacity to about 1 million tons per year and "maximize synergies with existing assets at Port Arthur and Bayport," according to the company. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can read detailed project reports on the ethane cracker and polyethylene unit.
Texas also was the focal point of TotalEnergies' renewables business last year, when the company acquired 2.2 gigawatts (GW) of solar-generation projects and 0.6 GW of battery-storage projects in the Lone Star State. These projects include the Myrtle Solar Plant in Danbury, Texas, which the company believes will help to reduce carbon emissions by providing electricity to some of its major industrial sites, including Port Arthur. The first and second phases of Danbury are expected to generate 200 and 100 megawatts (MW), respectively, from photovoltaic (PV) panels, and will be supported by a 150-MW battery energy-storage system (BESS). Subscribers can read detailed project reports on Phase I, Phase II and the BESS.
TotalEnergies also intends to invest US$100 million per year in carbon capture and storage (CCS), "including research & development programs aimed at developing negative emissions technologies," according to the press release.
Walks Fine Line on Russian Projects
Most intriguingly, TotalEnergies says its oil and natural gas investments "will focus on low-cost--or low break-even--and low-emission upstream projects." By 2050, TotalEnergies expects it will produce about 1 million barrels per day of hydrocarbons, "or close to four times less than in 2030, in line with the reduction outlined in the International Energy Agency's 'Net Zero' vision," according to the press release. These hydrocarbon projects would consist primarily of LNG (about 25 million to 30 million tons per year), low-cost oil accounting for the remainder, according to the company.
But in the near term, the company's commitment to LNG development has been complicated by the ongoing conflict in Ukraine. Earlier this month, TotalEnergies condemned the Russian invasion of Ukraine, backed "the scope and strength" of U.S. and European sanctions against Russia "regardless of the consequences on its asset management," and said it would no longer provide capital for new projects in Russia. The company reported 21% of its proved reserves and 18% of its oil and gas production for 2021 was located in Russia.
While TotalEnergies said it would stop purchasing oil and petroleum products from Russia by the end of the year, it will not withdraw from the assets it already holds in the country. TotalEnergies does not operate any oil field, gas field or LNG plant in Russia, but it is a minority shareholder in several non-state-owned Russian companies, including Novatek (19.4%), Yamal LNG (20%), Arctic LNG-2 (10%) and TernefteGaz (49%). TotalEnergies acknowledged a combined exposure of US$1.2 billion to its stakes in the Yamal LNG and Arctic LNG-2 programs.
Under long-term contracts, TotalEnergies is committed to purchase 5.2 million tons of LNG per year from the Yamal LNG plant, which draws from the onshore South Tambey gas and condensates field on the Yamal Peninsula in northern Russia. The plant's 2021 production exceeded its nameplate capacity by 17% to 19.3 million tons per year, according to the company. Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can read a detailed plant profile.
Located on the Gydan Peninsula, opposite the Yamal Peninsula on the Kara Sea, the Arctic LNG-2 project is facing an uncertain future as various countries--first Italy, and more recently Japan and France--have withdrawn their financial support amid the crisis in Ukraine. Novatek (Tarko-Sale, Russia), which is Russia's second-largest natural gas producer, is developing the project and secured 20-year sales and purchase agreements for all of its expected future capacity of about 20 million tons of LNG, after beginning construction on the first phase in late 2019.
But Novatek recently announced it was halting all of its expansion projects companywide, other than Arctic LNG-2's first phase. Halted projects include the second phase of Arctic LNG-2, which had been set to begin later this year, and the third phase, set to start in late 2023. Each phase is designed to produce 6 million tons per year. TotalEnergies said it would "no longer record proved reserves for Arctic LNG 2 in its accounts and will not provide any more capital for this project." Subscribers can read detailed reports on Phase I, Phase II and Phase III, and click here for a full list of Arctic LNG-2 project reports.
On the other hand, TotalEnergies plans to revive several extension projects at its hydrocarbon fields worldwide that had been put on hold during the pandemic. These include the Angola LNG project, in which TotalEnergies holds a 13.6% interest. The project's developers expect to begin construction this year on a US$1.5 billion gas-processing plant near Soyo, Angola, with a total production capacity of 400 million standard cubic feet per day. Subscribers can read a detailed report on the Soyo project and click here for a full list of active Angola LNG projects.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Click on the image at right for a graph detailing the top 10 industrial sectors for TotalEnergies' active projects, by total investment value.TotalEnergies is wrapping up construction of a US$1.8 billion ethane cracker at its complex in Port Arthur, Texas, with an ethylene production capacity of 1 million tons per year. Built in conjunction with Borealis AG (Vienna, Austria), the project was set to be fully completed this month, but TotalEnergies conceded "the commissioning phase has led to technical adjustments." Nonetheless, its startup is expected later this year.
The TotalEnergies-Borealis joint venture, which is called Bayport Polymers LLC, also is building a US$1 billion polyethylene unit downstream from the ethane cracker, at the Bayport site. It is expected to more than double Bayport's polyethylene production capacity to about 1 million tons per year and "maximize synergies with existing assets at Port Arthur and Bayport," according to the company. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can read detailed project reports on the ethane cracker and polyethylene unit.
Texas also was the focal point of TotalEnergies' renewables business last year, when the company acquired 2.2 gigawatts (GW) of solar-generation projects and 0.6 GW of battery-storage projects in the Lone Star State. These projects include the Myrtle Solar Plant in Danbury, Texas, which the company believes will help to reduce carbon emissions by providing electricity to some of its major industrial sites, including Port Arthur. The first and second phases of Danbury are expected to generate 200 and 100 megawatts (MW), respectively, from photovoltaic (PV) panels, and will be supported by a 150-MW battery energy-storage system (BESS). Subscribers can read detailed project reports on Phase I, Phase II and the BESS.
TotalEnergies also intends to invest US$100 million per year in carbon capture and storage (CCS), "including research & development programs aimed at developing negative emissions technologies," according to the press release.
Walks Fine Line on Russian Projects
Most intriguingly, TotalEnergies says its oil and natural gas investments "will focus on low-cost--or low break-even--and low-emission upstream projects." By 2050, TotalEnergies expects it will produce about 1 million barrels per day of hydrocarbons, "or close to four times less than in 2030, in line with the reduction outlined in the International Energy Agency's 'Net Zero' vision," according to the press release. These hydrocarbon projects would consist primarily of LNG (about 25 million to 30 million tons per year), low-cost oil accounting for the remainder, according to the company.
But in the near term, the company's commitment to LNG development has been complicated by the ongoing conflict in Ukraine. Earlier this month, TotalEnergies condemned the Russian invasion of Ukraine, backed "the scope and strength" of U.S. and European sanctions against Russia "regardless of the consequences on its asset management," and said it would no longer provide capital for new projects in Russia. The company reported 21% of its proved reserves and 18% of its oil and gas production for 2021 was located in Russia.
While TotalEnergies said it would stop purchasing oil and petroleum products from Russia by the end of the year, it will not withdraw from the assets it already holds in the country. TotalEnergies does not operate any oil field, gas field or LNG plant in Russia, but it is a minority shareholder in several non-state-owned Russian companies, including Novatek (19.4%), Yamal LNG (20%), Arctic LNG-2 (10%) and TernefteGaz (49%). TotalEnergies acknowledged a combined exposure of US$1.2 billion to its stakes in the Yamal LNG and Arctic LNG-2 programs.
Under long-term contracts, TotalEnergies is committed to purchase 5.2 million tons of LNG per year from the Yamal LNG plant, which draws from the onshore South Tambey gas and condensates field on the Yamal Peninsula in northern Russia. The plant's 2021 production exceeded its nameplate capacity by 17% to 19.3 million tons per year, according to the company. Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can read a detailed plant profile.
Located on the Gydan Peninsula, opposite the Yamal Peninsula on the Kara Sea, the Arctic LNG-2 project is facing an uncertain future as various countries--first Italy, and more recently Japan and France--have withdrawn their financial support amid the crisis in Ukraine. Novatek (Tarko-Sale, Russia), which is Russia's second-largest natural gas producer, is developing the project and secured 20-year sales and purchase agreements for all of its expected future capacity of about 20 million tons of LNG, after beginning construction on the first phase in late 2019.
But Novatek recently announced it was halting all of its expansion projects companywide, other than Arctic LNG-2's first phase. Halted projects include the second phase of Arctic LNG-2, which had been set to begin later this year, and the third phase, set to start in late 2023. Each phase is designed to produce 6 million tons per year. TotalEnergies said it would "no longer record proved reserves for Arctic LNG 2 in its accounts and will not provide any more capital for this project." Subscribers can read detailed reports on Phase I, Phase II and Phase III, and click here for a full list of Arctic LNG-2 project reports.
On the other hand, TotalEnergies plans to revive several extension projects at its hydrocarbon fields worldwide that had been put on hold during the pandemic. These include the Angola LNG project, in which TotalEnergies holds a 13.6% interest. The project's developers expect to begin construction this year on a US$1.5 billion gas-processing plant near Soyo, Angola, with a total production capacity of 400 million standard cubic feet per day. Subscribers can read a detailed report on the Soyo project and click here for a full list of active Angola LNG projects.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
