The Shareholders' Newsletter #69 - Fall 2022



TotalEnergies accelerates its transformation into a multi-energy company

On September 28 in New York, TotalEnergies presented its strategy and prospects to investors. The Company is accelerating its transformation into a multi-energy company in a high oil price environment and in the context of changing energy markets.

In the context of changing energy markets, TotalEnergies demonstrated the relevance of its balanced strategy based on three pillars: oil, gas, electricity and renewable energies.

In the liquefied natural gas (LNG) sector, TotalEnergies continues its development throughout the value chain, in order to become an integrated player, from production to distribution. The Company is currently in the top three LNG players worldwide. It is also the first LNG exporter in the United States, the first European regas capacity holder and the second largest North Sea gas producer. Thanks to the acquisition of the Engie LNG portfolio in 2018 and to upcoming growth opportunities in several countries, TotalEnergies holds an extensive portfolio to ensure LNG growth without Russia. The drivers behind this growth include the Cameron Phase 2 and ECA projects in the United States, North Field East and North Field South in Qatar, Papua LNG in Papua New Guinea, and Giant Area-1 Resources in Mozambique. This growth in the LNG offer will help meet demand on markets that remain tight owing to an imbalance between supply and demand. Moreover, the European crisis has also proven the crucial role of natural gas in the energy transition. When gas is in short supply, some countries look to coal and oil - fuels that emit greater quantities of CO2 than gas - which goes against the Net Zero ambition shared by many nations worldwide.

This graph shows the LNG production

In 2021, including Russia, LNG production is approximately 19 Mt/y.

In 2027, LNG production is approximately 14 Mt/y excluding Russia and for Qatar (NFE ECA NLNG T7), LNG production is approximately 5 Mt/y.

In 2030, LNG production is approximately 24 Mt/y excluding Russia. LNG production has increased by + 40 % between 2021 and 2030.

Oil & gas activities to finance the energy transition

The Company has reasserted its determination to pursue its activities in the oil & gas sector, and continue to invest in low-cost, low-emissions projects, to meet global demand and finance the energy transition.

TotalEnergies holds a high-quality portfolio of oil & gas projects, representing approximately 1.5 billion barrels of resources, thanks in particular to the acquisition of Maersk Oil in 2017, to the many projects developed in Brazil (Sépia, Atapu, Mero) and to the Tilenga/EACOP project kicked off in February 2022. Other short-cycle, low-cost and low-emissions projects have been identified and, in particular, the Company has positively identified a new hub in Angola. In Exploration, significant discoveries were announced in 2022, particularly in Suriname and Namibia. In addition, in refining and petrochemicals, our teams are working to increase the utilization rate of facilities to over 80%, one of the keys to operational effectiveness.

An integrated player in electricity and renewables too

In the electricity and renewables sector, which is at the heart of the energy transition, TotalEnergies applies the same strategy as for oil and gas, i.e. to develop along the entire integrated value chain, from production to distribution, through storage and trading.

As regards production, the Company is prioritizing low-cost production with an objective of approximately 130 TWh by 2030. It then subsequently optimizes the value of its production through storage and trading, aiming for 5 GW of storage by 2030. Regarding distribution, TotalEnergies is developing its customer portfolio and is now directly supplying electricity to approximately 10 million customers in Europe. In the e-mobility sector, the Company has set itself the objective of operating 150,000 electrical charging points in Europe by 2025, including fast-charging stations in strategic areas. It has taken up positions on concessions in several major world cities (Paris, London, Amsterdam, Ghent, Antwerp, Wuhan and Singapore).

In the renewables sector, TotalEnergies is accelerating the development of a profitable portfolio, with competitive acquisitions and organic growth. In so doing, it has secured a production portfolio of 35 GW by 2025, which represents over $35 billion. In 2025, of the 35 GW gross installed capacity, 40% will be operated * and 60% OBO **. Between 2022 and 2027, this business will generate approximately $1.5 billion and the equity yield will be over 10%.

* The conduct of activities in operated assets is entrusted to TotalEnergies on behalf of all the partners holding an interest in these assets.

** TotalEnergies has an interest in assets operated by others but does not conduct the activities.