TotalEnergies SE (TTE) shares are experiencing a positive premarket surge on Wednesday, fueled by a combination of strategic agreements in the energy sector. The company has signed a mid-term liquefied natural gas (LNG) supply contract with Santos, securing the delivery of 20 LNG cargoes, equivalent to up to 0.5 million tonnes annually, over a three-year period plus one quarter. This deal signifies TotalEnergies’ commitment to expanding its LNG portfolio and catering to the growing demand in Asia.
The LNG, sourced from Santos’ global portfolio, will be delivered ex-ship starting in the fourth quarter of 2025. Kevin Gallagher, Santos Managing Director and Chief Executive Officer, highlighted the significance of this agreement, stating that it solidifies Santos’ strong LNG portfolio position and customer relationships in the region. He further emphasized the company’s strategic approach to balancing its portfolio with a focus on oil-indexed contracts and spot pricing exposure.
Adding to the positive news, TotalEnergies, alongside APA Corporation and Staatsolie Maatschappij Suriname, announced a Final Investment Decision (FID) for the first oil development in Block 58, located offshore Suriname. This project represents a significant investment, estimated at $10.5 billion, with the first oil expected in 2028.
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In premarket trading on Wednesday, TTE shares were up 2.60% at $67.39.
This deal with Santos and the Suriname oil development further solidify TotalEnergies’ position as a major player in the global energy landscape, driven by its commitment to both traditional energy sources and its exploration of new opportunities. These strategic moves signal TotalEnergies’ dedication to navigating the evolving energy sector while meeting the growing demand for reliable energy solutions.
