HomeNewsTotalEnergies CEO says gas market volatility to remain until new supply arrives

TotalEnergies CEO says gas market volatility to remain until new supply arrives

11/14/2023

(Reuters) - The Chief Executive of French energy giant TotalEnergies said on Tuesday that the LNG market will continue to experience volatility until new supply is available, but prices are reasonable compared to 2022.

"Prices are volatile ... Because we have very little margin (between) supply and demand system," Patrick Pouyanne said in a pre-recorded interview broadcast on Tuesday at Wood Mackenzie's Gas and LNG Future of Energy Conference in London.

"From 2026, 2027 we will have more margin to read the price," he added.

Europe is set to enter the winter heating season with a record amount of gas in storage - now at 99.49% full - protecting the region from the threat of shortages and a repeat of last year’s high prices sparked by Moscow's invasion of Ukraine.

Total is currently managing 50 million tonnes, which is more than 50% of the global LNG market, Pouyanne said, adding that the U.S. market is very important to its portfolio as it helps the company "arbitrate" - or move cargoes - between Europe and Asia.

In October, TotalEnergies signed a 27-year LNG supply deal with QatarEnergy, in one of Qatar's biggest and longest gas supply deals with Europe.

Deliveries are due to start from 2026 and continue until 2053.

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