The Chief Executive of French energy giant TotalEnergies, Patrick Pouyanne, stated in a recent interview that the liquefied natural gas (LNG) market will continue to face volatility until new supply becomes available. Pouyanne mentioned that the current prices are reasonable compared to the previous year. He explained that the market is volatile due to the low margin between supply and demand. However, he expressed optimism for the future, stating that by 2026-2027, there will be more margin to stabilize prices.

Pouyanne made these comments during the Wood Mackenzie’s Gas and LNG Future of Energy Conference in London. He highlighted the importance of the US market in TotalEnergies’ portfolio as it allows the company to arbitrate or move cargoes between Europe and Asia. TotalEnergies currently manages more than 50% of the global LNG market, with 50 million tonnes under its management.

Europe is entering the winter heating season with a record amount of gas in storage, currently at 99.49% capacity. This high storage level helps protect the region from potential shortages and price spikes, similar to those seen last year following Russia’s invasion of Ukraine.

TotalEnergies recently signed a significant LNG supply deal with QatarEnergy, one of Qatar’s largest and longest gas supply agreements with Europe. The deal spans 27 years, starting in 2026 and continuing until 2053.

In conclusion, Pouyanne’s remarks shed light on the challenges and opportunities in the LNG market. While volatility persists in the short term, TotalEnergies remains confident about the future. With its strong presence and strategic partnerships, the company is well-positioned to navigate the evolving dynamics of the LNG market.