TotalEnergies expands its natural gas production in Texas

TotalEnergies said on Monday it has agreed to acquire the 20% interest held by Lewis Energy Group in the Dorado leases operated by EOG Resources (80%) in the Eagle Ford shale gas play, increasing its natural gas production capacity in Texas and further strengthening its business integration in the US LNG value chain.

Located in Texas, the Dorado field will allow TotalEnergies to increase its net US natural gas production by 50 million cubic feet a day (Mcf/d) in 2024, with the potential for an additional 50 Mcf/d by 2028, the company said in a statement.

The field has an emission intensity of around 10 kg CO2e/boe. In 2023, TotalEnergies’ net US natural gas output reached around 340 Mcf/d (450 Mcf/d technical production), TotalEnergies said.

With more than 10 million tons (Mt) in 2023, TotalEnergies was the number one exporter of US LNG, thanks to its 16.6% stake in the Cameron LNG plant in Louisiana and several long-term purchasing agreements. The company’s LNG export capacity will reach 15 Mt/y by 2030 following the start-up of the first phase of the Rio Grande LNG project in Texas, currently under construction, TotalEnergies said.

“This acquisition strengthens our production of natural gas in the United States, contributing to reinforce TotalEnergies' LNG integration with a low cost and low emission upstream gas feed,” said Nicolas Terraz, President, Exploration & Production at TotalEnergies. “We are pleased to partner with EOG Resources, an operator recognised for its strong technical expertise.”

With upstream gas production assets in Texas, TotalEnergies is integrated throughout the LNG value chain. The US is also a key country for the deployment of TotalEnergies’ Integrated power strategy, where its portfolio includes 25 GW of renewables projects, flexible generation assets, including 1.5 GW of gas-fired power plants in Texas, and a trading center in Houston.

The company is also active in upstream oil production in the Gulf of Mexico, and in refining and petrochemicals, centered on its platform in Port Arthur (Texas). TotalEnergies is also present in CCS and in low-carbon fuels, such as biogas and e-NG.