Dozens of US LNG cargoes have been cancelled this summer. Philippe Sauquet, Total’s president of gas, renewables and power, said it is a “wake-up call” for the industry that new LNG projects will not automatically be profitable.
Due to an oversupplied market coupled with the demand hit from the coronavirus pandemic, spot LNG prices have slumped to record lows in 2020.
With a focus on cost, Sauquet added that Total’s strategy around LNG investments was unchanged. The oil major would be interested in collaborating with Qatar as one of the world’s lowest-cost LNG producers in its massive LNG expansion project.
In its Gas, Renewables and Power division, Total has already been busy with a number of high-profile acquisitions since created in 2016 under Sauquet, and more in the future is expected. As part of its ambition to transform from an oil and gas company into an energy company, Total wants to continue to accelerate its development in low-carbon energy.
