TotalEnergies (NYSE:TTE) on Monday disclosed that its Papua LNG project has reached several key contractual and commercial milestones, moving it closer to a Final Investment Decision.

As part of the transition, TotalEnergies will sell a 9.1% interest in Papua LNG to its partners after Kumul Petroleum‘s back-in, reducing its stake to 20% while retaining its LNG offtake share. ExxonMobil (NYSE:XOM) will hold 34.1% and become operator, Santos 21.0%, ENEOS Xplora 2.4%, and Kumul Petroleum Holdings Limited and MRDC 22.5%.

Papua LNG is a gas production and liquefaction project in Papua New Guinea developing the Elk and Antelope fields in the Gulf Province. It is designed to produce 5.6 Mtpa of LNG, primarily for Asian markets, with processing facilities, a connecting pipeline and LNG infrastructure near Port Moresby.

Details

TotalEnergies and the Papua New Guinea government finalized amendments to the 2019 Gas Agreement, incorporating the updated budget and project optimizations while supporting project economics across market cycles and preserving the State’s long-term fiscal interests.

The company said that EPC tender process has been completed, with contract award recommendations ready for co-venturer approval.

Since 2024, project optimization and the rebidding of EPC packages with a broader group of Asian contractors have generated nearly $4 billion in cost savings, reducing estimated capital expenditure to around $14 billion.

TotalEnergies and Kumul Petroleum Holdings Limited, together with other PNG state-related entities, also established an LNG marketing joint venture to commercialize 2.4 Mtpa of Papua LNG’s total 5.6 Mtpa production, supporting project financing. In addition, TotalEnergies signed an LNG offtake Heads of Agreement with the joint venture sellers, securing access to 1.5 Mtpa for its global portfolio.

Boosts Clean Energy Growth With Shell Deal

Last month, TotalEnergies agreed to acquire Shell PLC’s (NYSE:SHEL) entire onshore renewables business in Europe.

This includes 500 MW of operating and under-construction solar and wind assets, primarily in Italy and the Netherlands.

The deal also includes a 3.5 GW pipeline of solar, wind, and battery storage projects across Italy, the U.K., and Spain.

The acquisition will boost TotalEnergies’ foothold in Europe. The deal is expected to boost its renewables portfolio to nearly 10 GW of installed or under-construction capacity and 27 GW under development across key markets.

TTE Stock Price Activity: TotalEnergies shares were down 0.38% at $88.25 during premarket trading Monday.

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