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TotalEnergies CEO urges Europe to negotiate LNG free-trade deal with US
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TotalEnergies CEO urges Europe to negotiate LNG free-trade deal with US
Feb 5, 2025 4:08 AM

*

TotalEnergies is top exporter of U.S. LNG

*

CEO Pouyanne recently asked Trump to guarantee exports to

Europe

*

Europe relies heavily on US supplies, also seeking to cut

Russian imports

By Benjamin Mallet and America Hernandez

PARIS, Feb 5 (Reuters) - TotalEnergies CEO

Patrick Pouyanne said on Wednesday that Europe should negotiate

to obtain a free-trade guarantee on U.S. liquefied natural gas

(LNG), against the backdrop of an unpredictable global trade

environment.

U.S. President Donald Trump has just imposed sweeping

tariffs on Chinese imports, to which Beijing has responded with

a 15% levy on U.S. LNG and 10% on U.S. crude oil.

Speaking to reporters after the company announced fourth-

quarter earnings, Pouyanne said that LNG export capacity in the

United States should practically double in coming years.

"But what happens if all of a sudden the U.S. decides they

must export less than they've done historically? ... We must not

pass from a so-called over-dependence on Russia to an

over-dependence on another country, even if it's an ally,"

Pouyanne said.

The global business community is having to grapple with a

wave of tariffs launched by the new Trump administration on

several countries, some of which have been suspended

temporarily.

Trump has also threatened Europe with tariffs, though he has

not yet imposed any, leaving companies facing a high level of

uncertainty.

The EU received 43% of its LNG from the U.S. last year,

making it the biggest supplier by far, according to Kpler data.

But the EU is also trying to reduce its reliance on

second-biggest supplier Russia.

The European Commission did not propose a ban on Russian

liquefied natural gas in its latest package of sanctions because

member states raised concerns about first securing alternatives

including from the United States, EU diplomats said last week.

Pouyanne asked Trump during a video conference at the World

Economic Forum in Davos last month if he would agree to

guarantee security of LNG supplies to Europe.

TotalEnergies is the U.S.'s largest LNG exporter with more

than 10 million tons under contract.

Trump responded by saying he would make sure that Europe

gets its supplies.

Pouyanne told reporters on Wednesday: "There are two types

of countries: those with free trade agreements that the

Americans have signed and under which they cannot suspend

exports, and then countries without free-trade agreements, like

Europe."

"I think it would be good for Europeans to ask the Americans

in the negotiations that are to come, for a sort of free-trade

guarantee on LNG," he said.

The European Commission did not immediately respond to a

request for comment.

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