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TotalEnergies SE TTE announced that it has signed a Heads of Agreement with Energia Natural Dominicana (“ENADOM”), a joint venture between AES Dominicana and Energas in the Dominican Republic, for the delivery of 400,000 tons of liquefied natural gas (“LNG”) per year.
This 15-year agreement is set to start in mid-2027, subject to the finalization of the sale and purchase agreements. The price will be indexed to Henry Hub.
Through this deal, ENADOM will be able to provide natural gas to the 470-megawatt (MW) combined-cycle power plant that is presently under construction. This, in turn, should increase the nation's clean energy generating capacity. By using natural gas, a less carbon-intensive energy source, to replace coal and fuel oil, Dominican Republic can shift to a cleaner energy system.
Since natural gas is replacing coal in the production of electricity, it can help reduce emissions and mitigate the intermittent nature of renewable energy sources.
TTE’s Primary Goal in the LNG Chain
TotalEnergies benefits from an integrated position across the LNG value chain, including production, transportation, access to more than 20 million tons per annum (Mtpa) of regasification capacity in Europe, trading and LNG bunkering.
The company’s global LNG portfolio was 40 Mtpa in 2024, owing to its interests in liquefaction plants in all geographies. The company continues to expand its LNG operation through acquisitions, partnerships and agreements. Its large fleet of LNG tankers and reserved capacity in several regasification terminals make it a perfect partner for the development of
LNG projects globally.
TTE’s expanding LNG operation is in sync with its long-term ambition to increase the share of natural gas in its sales mix to nearly 50% by 2030, reduce carbon emissions and eliminate methane emissions associated with the gas value chain.
Expanding LNG Market
Per Shell plc SHEL recent report, global demand for LNG is estimated to rise by around 60% by 2040, driven largely by economic growth in Asia, AI impact and efforts to cut emissions in heavy industries and transportation. Industry forecasts LNG demand to reach between 630-718 Mtpa by 2040.
The rising demand for LNG should also boost the prospects of companies like Cheniere Energy LNG, and BP plc BP, as these play a vital role in the supply of LNG worldwide. These companies are committed to ensuring access to a reliable and affordable source of energy as it transitions to a cleaner future.
Cheniere Energy continues to solidify its position as a dominant force in the U.S. LNG market, having recently received approval from the Federal Energy Regulatory Commission to expand its Corpus Christi LNG plant in Texas. The newly approved Midscale Trains 8 and 9 will add 3 Mtpa to the Corpus Christi facility, raising its total capacity to 18 Mtpa.
The Zacks Consensus Estimate for Cheniere’s 2025 sales indicates a year-over-year increase of 20.2%. The company delivered an average earnings surprise of 74.4% in the trailing four quarters.
BP is a significant player in the global LNG market, with a focus on both supply and demand. It aims to achieve a 25 Mtpa LNG portfolio by 2025 and have a global network for marketing and trading LNG.
BP’s long-term (three to five year) earnings growth rate is 7.86%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year increase of 24%.