In 2023, when Patrick Pouyanné, chairman of the board and CEO of TotalEnergies, spoke at CERAWeek presented by S&P Global, an activist interrupted his presentation by unfurling a flag bearing the inscription "Rio Grande Energy."
Upon his return to CERAWeek in 2024, Pouyanné remembered that activist fondly.
Daniel Yergin, vice chairman of S&P Global (left) and Patrick Pouyanné, chairman of the board and CEO of TotalEnergies.
"Rio Grande, in fact, is an energy project in which we have invested, so many thanks to her because that accelerated TotalEnergies’ participation in the project," Pouyanné said.
TotalEnergies’ Rio Grande LNG (RGLNG), a natural gas liquefaction project in Brownsville, Texas, is made up of three liquefaction trains with a total capacity of 17.5 million mt/y and capital expenditures of $14.8 billion. The plant is scheduled for commissioning in 2027. But that project is just one example of TotalEnergies’ presence in Texas. "In fact, since 2023, TotalEnergies has made many steps in Texas," Pouyanné said. "And we have announced we are forming a carbon solution business — CO2 storage — because we have assets in Texas."
Underscoring TotalEnergies’ commitment as an integrated power player in the Lone Star state, TotalEnergies signed an agreement last year with TexGen power company to acquire three gas-fired power plants with a total capacity of 1.5GW in Texas for $635 million.
These three plants, which are connected to the Electric Reliability Council of Texas, consist of the Wolf Hollow I plant, boasting a 745MW combined-cycle gas turbine (CCGT) plant on the outskirts of Dallas.
The second plant, the Colorado Bend I plant south of Houston, is a 530MW CCGT and a 74MW open-cycle gas turbine (OCGT) designed to provide additional flexibility to meet exceptionally high demand.
Thirdly, the La Porte, Texas, site with a 150MW OCGT, is located southeast of Houston.
These three flexible assets will serve the fast-growing energy demand of Texas’ largest cities and underscore TotalEnergies’ commitment to delivering energy "that is more available, affordable and sustainable for the 26 million Electric Reliability Council of Texas customers across Texas.
"You know, we lost Russia two years ago, but we gained Texas, so I think that is good for investors," Pouyanné said, touting TotalEnergies’ demonstrated agility.
Pouyanné said he recognizes that Texas, perhaps more than any other location, is ideal for putting together an entire integrated power strategy, including natural gas.
"When you think about power and what the customer wants, they want firm, clean power — firm, as in 24/7. So, we have to be integrated, and gas has a huge value in the transition," Pouyanné said. "Gas can replace coal in some emerging countries. We need transition fuels and gas is one of them."
CERAWeek session moderator and Vice Chairman of S&P Global, Dr. Daniel Yergin, reminded Pouyanné that, in past years, Pouyanné had indicated that TotalEnergies was "shy" about investing in the U.S.
"I remember five or six years ago you said you did not have a competitive advantage," Dr. Yergin said. "This is a big commitment in a very integrated way in Texas. Why the turnaround?"
Pouyanné explained the move is "fundamentally part of our transition strategy.
"The investments that we do are part of the investment value chain. Here (in Texas), you have the cheapest gas on the planet," Pouyanné concluded. "That sets the benchmark for many projects. Everything is here. You have the natural reserves, a growing population which means more energy demand and you have the Inflation Reduction Act. So, in the end, it’s a perfect cocktail."
