TotalEnergies – a world-class player in the energy transition
One year ago, Total had committed to a new climate ambition to achieve carbon neutrality by 2050 or earlier. On May 28th of 2021 a totally new strategy to become a broad energy company and meet the dual challenge of energy transition: more energy and less carbon, was presented by our CEO Mr. Patrick Pouyanné to all company shareholders and was endorsed almost unanimously.
This day marks a completely new chapter for TotalEnergies, the new name and new logo of the former Total SA Group, which embarks on a major transformation of its business approach towards more sustainable energy mix, fully supporting the global Climate and Sustainable Development objectives, and with a clear vision and ambition of becoming a world-class player and an industry leader in the energy transition. We are moving to become a multi-energy company active in oil, natural gas, solar, wind, electricity, biomass and hydrogen, benefitting all our stakeholders.
The objectives we had committed to may seem quite challenging. But nevertheless, as a responsible energy major, not only we see the need to meet the global growth in energy demand, but also the need to meet the Paris Climate Agreement objectives, which calls to reduce greenhouse gas emissions and limit the average rise in planetary temperatures well below 2°C from pre-industrial levels.
Our strategy is based on four main pillars:
- Focusing on Natural Gas, Biogas, and Hydrogen (by expanding in liquified natural gas (LNG) and developing renewable gas, promoting natural gas as an ally of the energy transition, for electricity generation, heating, and travel)
- Building a world leader in electricity (by investing in low-carbon electricity, mainly from Renewables, and developing an integrated model, from production to sale)
- Decarbonizing and saving liquid energies (by focusing on the most resilient oil projects by preferring value to volume, adapting our refining capacity and sales to changing demand and increasing our production of renewable fuels)
- Developing carbon sinks (by continuing to invest in natural carbon sinks – forests, regenerative agriculture, and wetlands – and technologies for the capture and storage of CO2)
To put it in a simpler words, TotalEnergies will continue to excel in traditional oil and gas business by not increasing the production volumes, but by applying our best innovations and expertise to reduce emissions and increase the long-term value, as this approach will help us to sustainably support and finance investments into the growth of our new energies’ portfolio.
Our plan is to significantly increase the share of the “greener” energies and electricity business in our energy mix by investing consistently in Renewable energies (Wind and Solar in particular), produce more renewable fuels, and promote use of the natural gas which helps the energy transition from energy intensive and high emission fossil fuels to a much cleaner energy in a smooth and a sustainable way.
Out target is to be among the World’s top 5 in Renewable Energies by the year 2030. And in the next decade, the Company’s sales of oil products are expected to diminish by almost 30%, and TotalEnergies’ sales mix will become 30% oil products, 5% biofuels, 50% natural gas and 15% electrons, primarily of renewable origin.
TotalEnergies also intends to reduce the carbon footprint of its business activities through negative emissions. The Group is investing in two major carbon sink solutions: natural carbon sinks, such as forests, regenerative agriculture and wetlands, and carbon capture and storage (CCS).
Success of the company is never possible without strong support by our employees, stakeholders, and partners. Safety, Respect for Each Other, Pioneer Spirit, Stand Together and Performance-Minded – these are the five major values representing TotalEnergies shared commitment, our history, our identity, our vision, and which help us in guiding our day-to-day business in all the countries where TotalEnergies operate, including Kazakhstan.
Now speaking of our activities in Kazakhstan, I should admit that it is perfectly in line with the Company’s new strategy and committed objectives but as well with the ambition of the country to achieve carbon neutrality by 2060.
Starting with Elf, then Total, and now as TotalEnergies, we’ve been actively present in Kazakhstan since 1993. With the main asset of the infamous Kashagan oilfield we, together with our consortium partners, had managed to develop the world-class facilities both onshore and offshore in the sensitive North Caspian environment. There are two things we are especially proud of about Kashagan: first, it has always been at the forefront of the technologies in terms of environment protection and zero flaring policy applied from the very design stage. And secondly, the project is leading in terms of safety and efficiency of the facilities and operations, successfully reaching the 400 thousand barrels per day capacity. Today we continue to export oil and sulfur to international markets and in August of 2021 we have marked the 100th vessel with Kashagan oil (TotalEnergies’ share) shipped to TotalEnergies and our partner refineries. Together with the consortium partners, we will continue to work on further expansion of this unique oilfield capacity towards 500 thousand barrels per day and potentially well beyond, ensuring excellence in cost effectiveness and discipline, applying best international standards, promoting local content and creation of world class local service providers for our operations here.
Another good asset we had acquired in 2018 along with the global purchase of the Maersk Oil company is the Dunga field in Mangistau region, where TotalEnergies is now the operator (with 60% share, alongside with Oman Oil and Partex). On July 4th of 2019 we have extended the PSA of Dunga for another 15 years and started implementation of investment Phase 3 worth of 300 mln. USD. This will help us to extend the plateau and oil production level from current 15 thousand to 20 thousand barrels per day, add production of more than 70 million barrels of reserves, and ultimately support a sustainable employment and economic development in Mangistau region.
Success in a traditional oil & gas business helps us a lot in our pursue on our path and the strategy towards New Energies development. Started in late 2019 our subsidiary Total Eren had successfully brought on-stream two solar projects with overall 128 MW capacity in the South of Kazakhstan (namely, 28 MW Nomad project in Kyzylorda region and 100 MW M-KAT project in Zhambyl region).
Going further and supporting Kazakhstan’s ambition in Renewable energies sector development, TotalEnergies, Total Eren in conjunction with Saft (our another world-class provider of the industry leading batteries/power storage solutions), and the RoK Ministry of Energy, NWF Samruk-Kazyna, and NC KazMunayGas have signed a Memorandum of Understanding on development of the first in Central Asia 1 GW wind onshore project, which will be combined with the 500 MW power storage units. The project will apply the world-class solutions in order to meet the growing demand for electricity production while ensuring the grid stability and power balance. These efforts will also contribute to the endeavors of Kazakhstan to increase the share of renewables in the energy mix.
Our TotalEnergies Marketing Kazakhstan branch is working actively on expansion of the distribution and logistics network for our lubricant products in Central Asia, from 2013 that work has been coordinated from the office in Almaty. And Saft is working closely with key operators in oil & gas, air and railway transport, and other industries in Kazakhstan providing the world’s best power storage solutions.
In TotalEnergies we always position ourselves as a Responsible energy major and we have always been an active contributor and supporter of social activities and local capacity building.
I’m glad that our projects on local human capital development and talents support have received the highest appraisal from the Kazakhstan Government and personally from the First President Mr. Nursultan Nazarbayev. With the Kazakhstan Welding Institute project, for example, TotalEnergies has helped the Republic to become the 55th fully-fledged member of the International Institute of Welding and helped to establish here a complete system of professional training for all categories of welders as well as certification of facilities and personnel via top international ISO standards in Welding.
We have also helped to establish strong professional connections and run joint educational programs between top universities and research centers of Kazakhstan and France, including l’ENA, IFP, University of Strasbourg, Nazarbayev University, Academy of Public Administration, KBTU and others.
In 2018 we had started our Energy Summer School in Kazakhstan with the assistance of the TotalEnergies’ Professors’ Association, and for the fourth year now our experts with 30-40 years of practical professional experience provide lectures on a very wide range of traditional and new energy industries as well as cross-discipline topics to the leading Kazakhstan universities (already covered cities of Almaty, Nur-Sultan, Atyrau, and Aktau).
Through NCOC and Dunga social infrastructure programs we are helping the regional infrastructure development and invested millions into construction of schools, sport facilities, youth clubs, roads, electric lines, cultural centers, museums, libraries, parks, squares, and many other important facilities especially in Atyrau and Mangistau regions. Besides the infrastructure, we provide support for the vulnerable groups and promote Inclusivity, Diversity, and Safety for the benefit of local society.
In 2020 with the pandemic having an unprecedent impact on our lives everywhere, in TotalEnergies we could not stay aside and provided all possible assistance to the Republic of Kazakhstan to help to improve the Healthcare system and medical facilities. For the overall value of 2.4 mln. USD directly from TotalEnergies as well as through NCOC, Dunga, and Total Eren we have purchased big number of medical equipment to hospitals in Atyrau, Mangistau, Kyzylorda, Zhambyl regions and Nur-Sultan city (that including ventilators, tomographs, masks, sanitizers, and other important supplies). We have also donated a number of laptops to schools and children from the vulnerable families in order to help them to adapt well to the online regime so they could efficiently continue their education.
Finally, TotalEnergies had always actively promoted strong business and cultural ties between Kazakhstan and France. We play an active role in the Kazakh French Business Council, Chamber of Commerce and Industry France-Kazakhstan, collaborate closely with leading associations including KAZENERGY, Foreign Investors’ Council, AmCham, and we will continue on this important mission in line with our highest business principles and devotion.
Looking forward, it is very encouraging to see how Kazakhstan positions itself in the current world trends and developments. Especially regarding decarbonization of the economy – we at TotalEnergies are fully supporting the clear ambition presented by the President Tokayev for Kazakhstan to become carbon neutral by year 2060. Myself being a co-chair of the Low Carbon development working group and the Energy working group under the Foreign Investors’ Council umbrella together with our partners from the Kazakhstan Ministry of Energy and Ministry of Ecology, Geology, and Natural Resources I want to reassure that TotalEnergies will bring our best expertise in Carbon footprint reduction and help Kazakhstan to decarbonize its economy, develop advanced and cleaner technologies in traditional oil & gas sector, create new economic industries and unlock new investment opportunities.
Going to conclusion and looking towards celebration of the 30th Anniversary of Kazakhstan’s Independence, I must admit that Kazakhstan has made a huge progress in all spheres of business and social life over the past 30 years, and TotalEnergies has played and continues to play its part in the unlocking of country’s economic and energy industry potential.
There is a lot of work, a new journey, and many new challenges and opportunities ahead, but I’m confident that TotalEnergies will continue to strengthen strategic partnership with the Republic and support sustainable development, while maintaining highest industry standards and business ethics.
Let me cordially congratulate all people of Kazakhstan with the upcoming Independence Day, and wish all the success in a New Year 2022!