Oct 14, 2019

French energy giant looks to capitalize on India's LNG market

A Total oil refinery in Dunkirk in 2010. Photo: Andia/Universal Images Group via Getty Images

Total SA is acquiring a 37% stake in the Indian gas distribution firm Adani Gas as the French energy giant looks to capitalize on rising LNG demand in the world's second-most populous nation.

Why it matters: The roughly $600 million deal announced Monday will give Total "a footprint in a market where annual LNG demand will hit 28 million tons by 2023, making it the fourth biggest importer of the fuel," Bloomberg reports. Total is already the world's second-largest LNG player.

The big picture: "Total is the third foreign oil major to enter India’s gas sector after BP PLC and Shell, and it comes at a time when India is spending heavily to cut its carbon emissions," Reuters notes.

What they're saying: "Total’s investment in Adani is undoubtedly a show of faith in India’s gas demand growth," the research firm Wood Mackenzie said in a note.

  • They point out that India wants gas to meet 15% of its energy demand by 2030, up from 6% today.
  • And while they don't see India hitting that target, their note still sees major demand growth in that timeframe and projects that LNG will meet half of it.

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To meet climate goals, oil producers must slash production

Illustration: Sarah Grillo/Axios

The world's biggest publicly traded oil and natural gas companies would have to cut production by roughly a third on average by 2040 to meet the goals of the Paris climate deal, according to a new report.

The big picture: The opposite is occurring. Most oil and gas producers are expanding production in response to growing demand and the fact that the world is not on track to meet the Paris ambitions.

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Big Oil is facing a tough week of third-quarter earnings reports

A sign showing gas prices per gallon in 2014. Photo: Joe Raedle/Getty Images

The world's largest publicly held oil-and-gas companies are slated to report third-quarter earnings this week.

Why it matters: It provides the latest window into how the companies are handling modest oil prices and sluggish global demand growth.

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Shell reports third-quarter profit dip but still beats forecasts

Photo: Omar Marques/SOPA Images/LightRocket via Getty Images)

Royal Dutch Shell reported a net third-quarter profit of $4.77 billion on Thursday, a 15% slide from the same period last year that nonetheless exceeded analysts' expectations.

Why it matters: It's the latest — and expected — sign of how lower oil prices are weighing on the industry as profit reports roll in. U.S.-based global giants ExxonMobil and Chevron report tomorrow.

Go deeperArrowOct 31, 2019