While drastically lowering the emissions from its operations, TotalEnergies plans to grow Oil & Gas production by 2-3 % per year over the next five years, predominantly from LNG, thanks to its rich low cost, low emission upstream portfolio.
The Company will notably develop a top-tier pipeline of LNG projects (Qatar North Field Expansion, Papua LNG, ECA LNG and Rio Grande in US, Mozambique LNG) while leveraging its competitive advantage with leading positions in Europe regasification and in US exports. TotalEnergies will also concentrate efforts to develop its portfolio of high-return oil projects (Brazil, Gulf of Mexico, Iraq, Uganda) recently enriched with exploration successes in Suriname and Namibia.
The Oil & Gas business is expected to generate more than $3 billion of additional underlying cash flow in 2028 compared to 2023 at constant prices.
…and developing a profitable and differentiated Integrated Power model to create a future cash engine of the Company
TotalEnergies is replicating its integrated Oil & Gas business model into electricity to achieve a ROACE of ~12%, equivalent to upstream Oil & Gas ROACE at 60 $/b, above the “utility” model traditional returns.
The Company is building a world class cost-competitive portfolio combining renewable (solar, onshore wind, offshore wind) and flexible assets (CCGT, storage) to deliver clean firm power to its customers. TotalEnergies is leveraging its purchasing power to optimize its investment costs and industrialize its renewable assets through digital to lower operating costs. By utilizing its fortress balance sheet, TotalEnergies will capture additional value from price volatility through merchant exposure.
The Company aims to grow its power generation to more than 100 TWh by 2030, investing $4 billion per year and increase cash flow from ~$2 billion in 2023 to more than $4 billion by 2028, becoming net cash-flow positive.
