On Thursday, TotalEnergies SE (NYSE:TTE) entered into a preliminary agreement with Glenfarne to secure a long-term supply of liquefied natural gas (LNG) from the Alaska LNG project.
This strategic move involves acquiring 2 million tons per year over 20 years, pending the project’s final investment decision.
TotalEnergies Seizes Strategic LNG Opportunity
The Alaska LNG project is strategically positioned on the U.S. Pacific coast, making it the only federally authorized LNG export terminal in the region.
With a planned capacity of 20 million tons annually, the project aims to directly serve Asia, the largest LNG market globally, enhancing energy security and transpacific connections.
The agreement underscores TotalEnergies’ ambition to strengthen its position as a leading buyer of U.S. LNG while diversifying its supply sources.
In 2025, the company was the top U.S. LNG exporter, shipping 19 million tons, which accounted for 18% of the country’s production.
How Will Alaska LNG Reshape Energy Markets?
The Alaska LNG project enjoys robust political and institutional backing in the U.S. and aims to cater to Asia’s growing LNG demand. Its Pacific coast location offers logistical advantages and competitive pricing, according to TotalEnergies.
Glenfarnes CEO, Brendan Duval, highlighted the project’s unique Pacific orientation, which aligns with TotalEnergies ‘ supply strategy by providing Asian customers with direct access to U.S. gas. This collaboration is expected to enhance the project’s appeal.
Key Factors Fueling LNG Expansion
TotalEnergies is deeply integrated across the LNG value chain in North America, with gas production assets in Texas, Oklahoma, and offshore U.S. waters.
The company has invested in significant LNG projects across the continent, including Cameron LNG and Rio Grande LNG in the U.S., and Energia Costa Azul in Mexico.
As the world’s third-largest LNG player, TotalEnergies manages a global portfolio of 44 million tons annually, with interests in liquefaction plants worldwide.
The company aims to increase the share of natural gas in its sales mix to nearly 50% by 2030, focusing on reducing carbon and methane emissions.
Recent Earnings
This month, the French energy giant posted adjusted earnings of $1.73 per share, missing the $1.78 consensus estimate, and revenue came in at $50.62 billion, above the $33.94 billion consensus estimate.
TotalEnergies plans to increase its overall energy production (oil, gas, and electricity) by 5% over the year. The company expects 3% oil and gas production growth in 2026, driven by project ramp-ups from 2025 and new start-ups, supporting a 7% increase in cash flow at $60/b.
TTE Price Action: TotalEnergies shares were up 0.79% at $79.55 during premarket trading on Friday. The stock is trading near its 52-week high of $79.93, according to Benzinga Pro data.
Photo by Vytautas Kielaitis via Shutterstock
