TotalEnergies acquires Eagle Ford to strengthen gas integration

TotalEnergies has entered into an agreement with Lewis Energy Group to acquire a 45% stake in dry gas producing assets located in the Eagle Ford Basin in Texas. The acquisition strengthens TotalEnergies’ integration in the U.S. gas value chain following the company’s announcement in April 2024 of the acquisition of the Dorado assets in Texas. The newly acquired assets are located in southwest Texas and are expected to have a total sustainable production capacity of approximately 400 million cubic feet per day by 2028.

This is Total Energy’s second acquisition of a non-operated shale gas asset in 2024, following the company’s acquisition of a non-operated interest in the Dorado asset from Lewis Energy Group. In addition, Total Energy manages approximately 500 million cubic feet per day of technical production in the Barnett Formation. Total Energy exported more than 10 million tons of liquefied natural gas (LNG) in 2023, becoming the largest LNG exporter from the United States, with a 16.6% stake in the Cameron LNG plant in Louisiana and multiple long-term purchase agreements. The company expects its US LNG export capacity to rise to 15 million tons/year by 2030.

Nicolas Terraz, President of Total Energy Exploration and Production, stressed that the acquisition strengthens the company's position in US upstream gas and supports its integrated LNG strategy with a cost-effective upstream gas supply. He expressed enthusiasm for working with Lewis Energy Group and recognized the group as a respected and efficient gas operator with a strong presence in South Texas.

TotalEnergies is implementing its integrated energy model across the United States, and in 2023, the company produced more than 10 million tons of LNG, becoming the largest exporter of US LNG. TotalEnergies plans to increase its Rio Grande LNG facility in South Texas to 15 million tonnes per year once it is commissioned. The company is fully integrated into the entire LNG value chain, with upstream natural gas production assets in Texas and offshore the Gulf of Mexico.