TotalEnergies has signed an agreement with Lewis Energy Group to acquire a 45% interest in dry gas-producing assets in the Eagle Ford Basin of south Texas. Financial terms of the deal were not disclosed.
The French operator said the acquisition of these low-cost and long-plateau assets further strengthens its integration across the gas value chain in the US and follows the Dorado acquisition announced in April 2024.
According to TotalEnergies, the acquired assets have the potential to be developed to reach a sustainable gross production of around 400 Mcf/D by 2028.
“This acquisition further strengthens our upstream gas position in the United States and contributes to our integrated LNG position with a low-cost upstream gas supply,” said Nicolas Terraz, president, Exploration & Production at TotalEnergies. “We are delighted to partner with Lewis Energy Group, a well-renowned and highly efficient gas operator with an historical footprint in South Texas.”
This is TotalEnergies’ second acquisition of nonoperated shale gas assets from Lewis in 2024. The company agreed to acquire Lewis’ 20% stake in the Dorado leases operated by EOG Resources (80%) in the Eagle Ford shale. At the time of the deal, TotalEnergies said that the Dorado field would allow it to increase its net US natural gas production by 50 MMcf/D in 2024, with the potential for an additional 50 MMcf/D by 2028.
With over 10 million tons exported in 2023, TotalEnergies is the largest exporter of US LNG, thanks to its 16.6% stake in the Cameron LNG plant in Louisiana and several long-term purchasing agreements. The company’s US LNG export capacity is expected to reach 15 mtpa by 2030.
The robust expansion that the US LNG market had been experiencing over the past several years was brought to a halt by the Biden administration in January when it announced a temporary pause on pending decisions on exports of LNG to non-FTA countries. In July, a ruling from the US District Court for the Western District of Louisiana blocked the administration’s freeze.
In August, a D.C. circuit court ruled to vacate the Federal Energy Regulatory Commission’s (FERC) reauthorizations of both the Rio Grande LNG and South Texas LNG projects. According to the 6 August filing, the court will remand its decision to FERC for further proceedings, effectively resetting a crucial portion of the permitting process.
Two weeks after the ruling, NextDecade, the parent company of Rio Grande LNG, said it withdrew its FERC application for the proposed carbon capture and storage (CCS) project at the Rio Grande LNG facility and requested that FERC terminate the CCS proceeding.
“The CCS project at RGLNG is not sufficiently developed to allow FERC review to continue at this time,” said NextDecade Chairman and CEO Matt Schatzman regarding the application. “We remain committed to advancing and lowering the cost of utilizing carbon capture and storage and helping companies reduce their facility emissions and achieving their clean energy goals.”
In a 25 September letter, Texas Senator Ted Cruz urged FERC Chairman Willie Phillips to pursue an appeal and seek a stay of the 6 August decision pending the outcome of that appeal.
“There is no precedent for this decision,” the letter read. “The decision itself, as well as its unprecedented nature, will have far-reaching and negative cascade effects. Over $20 billion in economic investment and 31 million tonnes per annum LNG exports will be wiped out.”
