- It is aimed at enhancing Gas Value Chain Integration
TotalEnergies has signed an agreement with Lewis Energy Group to acquire a 45% interest in dry gas producing assets owned and operated by Lewis Energy Group in the Eagle Ford basin in Texas. The acquisition of these low cost and long plateau assets further strengthens TotalEnergies’ integration across the gas value chain in the US, and follows the Texas Dorado acquisition announced in April 2024.
The company is also aiming to further expand its natural gas production, located in Southwest Texas, whose volume, upon development, is estimated to reach a sustainable gross production of around 400 Mcf/d by 2028.
This the statement indicated, is the second acquisition of non-operated shale gas assets in 2024 after the purchase of non-operated interest in the Dorado asset, located in the Eagle Ford basin and which was purchased from Lewis Energy Group earlier this year. Moreover, TotalEnergies also operates a technical production of around 500 Mcf/d in the Barnett.
In the United States, TotalEnergies is said to be deploying its integrated energy model across the country, where it said it has been active since 1957. With over 10 Mt of output in 2023, TotalEnergies is the leading exporter of US LNGs, with plans to increase its capacity to 15 Mt/y after the start-up of the Rio Grande LNG plant in South Texas. It is integrated throughout the LNG value chain, with upstream gas production assets in Texas and offshore in the Gulf of Mexico. The U.S. is also a key country for the deployment of TotalEnergies’ Integrated Power strategy – with 25 GW of renewables projects and flexible generation assets, and as a power trading hub in Houston.
With over 10 million tons (Mt) exported in 2023, TotalEnergies is the largest exporter of U.S. LNG, a feat which was imputed to its 16.6% stake in the Cameron LNG plant in Louisiana and several long-term purchasing agreements. Its U.S. LNG export capacity is expected to reach 15 Mt/y by 2030.
“This acquisition further strengthens our upstream gas position in the United States and contributes to our integrated LNG position with a low cost upstream gas supply”, says Nicolas Terraz, President, Exploration & Production at TotalEnergies. “We are delighted to partner with Lewis Energy Group, a well-renowned and highly efficient gas operator with an historical footprint in South Texas.”