TotalEnergies Secures 20-Year Contract for 2 Mtpa of Alaska LNG
TotalEnergies locked in a preliminary 20-year agreement for 2 million tonnes per year of LNG from the Alaska LNG project, pending its final investment decision. The project’s 20 mtpa capacity and Pacific coast location will secure direct Asian supply, reinforcing TotalEnergies’ position as a leading U.S. LNG buyer.
1. Preliminary 20-Year LNG Agreement
TotalEnergies entered a preliminary deal with Glenfarne to acquire 2 million tonnes per year of LNG over 20 years from the Alaska LNG project, subject to the project’s final investment decision. This long-term commitment underscores the company’s strategy to secure stable, diversified gas supplies for key markets.
2. Alaska LNG Project Overview
The Alaska LNG project, the only federally authorized export terminal on the U.S. Pacific coast, is designed for 20 mtpa capacity and benefits from strong political and institutional support. Its direct Pacific orientation offers a logistical edge for shipments to Asia, the world’s largest LNG market.
3. Strategic Implications for TotalEnergies
By securing this supply, TotalEnergies strengthens its role as a major U.S. LNG buyer, complementing its existing North American portfolio, which includes Cameron LNG and Rio Grande LNG. The deal diversifies the company’s sources and enhances its ability to meet growing Asian demand.
4. Earnings and Production Outlook
In its latest quarter, TotalEnergies reported adjusted EPS of $1.73 versus $1.78 consensus and revenue of $50.62 billion, beating expectations. The company plans to grow overall energy output by 5% this year, target 3% oil and gas production growth in 2026, and increase cash flow by 7% at $60/b.