TotalEnergies to use oil cash to speed growth in LNG, renewables

TotalEnergies to use oil cash to speed growth in LNG, renewables

French oil major TotalEnergies plans to use part of its cash bonanza generated from surging hydrocarbon prices to speed up investment in liquefied natural gas (LNG) projects and renewables.

“This might be an opportunity to accelerate the transition,” TotalEnergies Chief Executive Officer Patrick Pouyanne said on a call with analysts Thursday after the company reported its first-quarter profits rose threefold as oil and gas prices surged. “If we move, it will be primarily in either the LNG fields, and/or in electricity and renewables,” he said, referring to the company’s potential acquisitions.

European nations are trying to find alternative supplies to Russian oil and gas and accelerate the shift toward renewables as President Vladimir Putin’s invasion of Ukraine exacerbates the continent’s energy crisis. The war has fuelled concern over supply security across Europe after Moscow cut off gas supplies to Poland and Bulgaria for failing to comply with a new payment mechanism.