TotalEnergies expands US gas footprint with 45% stake in Eagle Ford basin assets

TotalEnergies has signed an agreement with Lewis Energy Group to acquire a 45% interest in dry gas-producing assets in the Eagle Ford basin, Texas, the company announced on September 27. This acquisition enhances TotalEnergies' integration across the US gas value chain and follows the Texas Dorado acquisition announced in April 2024.

The newly acquired assets, located in Southwest Texas, have the potential to achieve a gross production of around 400mn ft3/day by 2028. This deal marks TotalEnergies’ second acquisition of non-operated shale gas assets in 2024, following the earlier purchase of a non-operated interest in the Dorado asset, also situated in the Eagle Ford basin and acquired from Lewis Energy Group.

Additionally, TotalEnergies maintains a technical production capacity of approximately 500 Mcf/day in the Barnett shale.

“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.”

In 2023, TotalEnergies emerged as the largest US LNG exporter, with over 10mn tonnes of LNG exported, thanks to its 16.6% stake in the Cameron LNG plant in Louisiana and multiple long-term purchasing agreements. The company's LNG export capacity in the US is projected to reach 15mn tonnes/year by 2030.