TotalEnergies Signs Deal for Alaska LNG to Supply Asia

Key Moments

Strategic 20-Year LNG Offtake from Alaska

On Thursday, TotalEnergies SE (NYSE:TTE) entered into a preliminary agreement with Glenfarne to secure liquefied natural gas supply from the Alaska LNG project. Under the terms of the arrangement, TotalEnergies plans to purchase 2 million tons of LNG per year for a period of 20 years. The agreement is contingent on a final investment decision for the project.

The transaction is designed to reinforce TotalEnergies’ long-term access to U.S. LNG, supporting its strategy to expand and diversify its global gas portfolio.

Alaska LNG’s Pacific Advantage and Asian Focus

The Alaska LNG project is located on the U.S. Pacific coast and is currently the only LNG export terminal in the region with federal authorization. The project is designed with a planned capacity of 20 million tons per year and is intended to supply LNG directly to Asia, which is described as the world’s largest LNG market.

By leveraging its Pacific location, the project targets improved energy security and stronger transpacific trade flows. The new offtake arrangement is presented as a key step in TotalEnergies’ plan to consolidate its role as a major buyer of U.S. LNG while enhancing diversification across its supply sources.

The article notes that in 2025, the company was the top U.S. LNG exporter, shipping 19 million tons, representing 18% of total U.S. production.

Potential Market Impact and Project Support

The Alaska LNG initiative is described as having substantial political and institutional support within the United States. Its objective is to respond to growing LNG demand across Asia. TotalEnergies indicates that the project’s Pacific positioning can provide logistical benefits and competitive pricing relative to other supply routes.

Glenfarne’s CEO, Brendan Duval, emphasized the project’s alignment with TotalEnergies’ supply strategy:

“Glenfarne’s CEO, Brendan Duval, highlighted the project’s unique Pacific orientation, which aligns with TotalEnergies’ supply strategy by providing Asian customers with direct access to U.S. gas. This collaboration is expected to enhance the project’s appeal.”

TotalEnergies’ North American LNG Footprint

TotalEnergies is described as being integrated across the LNG value chain in North America, with gas production assets in Texas, Oklahoma, and offshore U.S. basins. The company has committed capital to several key LNG developments on the continent, including Cameron LNG and Rio Grande LNG in the United States and Energia Costa Azul in Mexico.

Globally, TotalEnergies is identified as the third-largest LNG player, managing a portfolio of 44 million tons per year with stakes in multiple liquefaction plants. The company’s strategy includes raising the share of natural gas in its sales mix to nearly 50% by 2030, coupled with initiatives aimed at lowering carbon and methane emissions.

Financial Performance and Growth Outlook

This month, TotalEnergies reported adjusted earnings of $1.73 per share, falling short of the consensus forecast of $1.78 per share. Revenue reached $50.62 billion, surpassing the consensus estimate of $33.94 billion.

The company plans to grow its overall energy production – covering oil, gas, and electricity – by 5% over the year. For 2026, TotalEnergies expects oil and gas production to rise by 3%, supported by project ramp-ups from 2025 and additional new project start-ups. This trajectory is anticipated to underpin a 7% increase in cash flow at an oil price assumption of $60/b.

Market Reaction and Share Performance

During premarket trading on Friday, TotalEnergies shares were up 0.79% at $79.55. The stock was trading near its 52-week high of $79.93, according to Benzinga Pro data.

Key Data Snapshot