TOTAL (TOT) Ships 1st Carbon Neutral LNG Cargo, Cuts Emission

Zacks Equity Research
·3-min read

TOTAL SE TOT announced that it has shipped its first carbon neutral liquefied natural gas (LNG) cargo to the Chinese National Offshore Oil Corporation. The loading operation was carried out at the Ichthys liquefaction plant in Australia.

The carbon footprint of the LNG shipment was offset with verified carbon standards emissions certificates financing the Hebei Guyuan Wind Power Project and Kariba REDD+ Forest Protection Project. These projects are aimed at protecting the environment.

LNG’s Role in TOTAL’s Carbon Neutrality Goal

Natural gas’ clean burning nature is making it an important choice for global energy transition toward emission-less power generation. As it is not possible to export large volumes of natural gas across continents, the export of LNG is rising globally.

Per the LNG outlook of Royal Dutch Shell PLC RDS.A, global demand for the commodity will increase in the range of 4-5% in the 2015-2030 time period. TOTAL aims to increase LNG production and targets an overall portfolio of nearly 50 million tons per annum by 2025.

TOTAL, with widespread assets across the globe, is steadily expanding global LNG operation.  Acquisitions, tie-ups and the commencement of organic LNG projects are helping TOTAL to strengthen position in the global LNG market.

Since emission reduction is a key concern among countries across the globe, global demand for LNG is rising very steadily and its market is becoming highly competitive. Companies like Cheniere Energy LNG and PetroChina Company PTR, among others, have strong presence in the LNG space.

Long-Term Goal

TOTAL reaffirms the net-zero emission target for 2050 and has plans to invest in the range of $1.5-$2 billion annually in low-carbon electricity generation to achieve long-term goal.

By 2050-end, it expects 40% sales to be generated from the renewable power generation business. The company predicts renewables and electricity to deliver a cash flow of more than $1.5 billion per year by 2025.

Price Performance

In the past six months, TOTAL’s shares have outperformed the industry.

Zacks Rank

TOTAL currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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TOTAL S.A. (TOT) : Free Stock Analysis Report
 
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