Page 6 - AsianOil Week 40

AsianOil ASIA-PACIFIC AsianOil

These goals build on the promise it made in May Total recently announced it would convert its
to bring its Scope 1, 2 and 3 emissions to net zero 93,000 barrel per day (bpd) Grandpuits oil refin-
in Europe by 2050, and slash emissions in the rest ery near Paris to produce biofuel and bioplastics.
of the world by 60%. Meanwhile, it does not intend to build any new
“We want to transform Total to meet a dual conventional refineries, instead scaling back
challenge – more energy and less carbon,” Pouy- its European refining capacity to better match
anne explained. “The time is right to accelerate demand.
growth in low carbon. The real risk is not partic- Europe’s refining sector has struggled with
ipating in the transition and being left behind.” overcapacity for years, especially in France. The
Total wants to ramp up its overall energy pro- COVID-19 pandemic has put unprecedented
duction from 3mn to 4mn barrels of oil equiv- pressure on the sector, however, and will likely
alent per day (boepd) with increased LNG and spur rationalisation.
mostly renewable electricity generation. It wants While the oil industry is set to reach its peak
to expand investments in renewables and gen- in just 10 years, Total will continue advancing
eral power from $2bn to $3bn annually, so that low-cost oil projects that are resilient to price
they represent more than 20% of its total capital volatility, Pouyanne said. He said the Middle
spending. East and North Africa offered the lowest costs,
Total is targeting 50 TWh of net power gener- and would therefore be Total’s main focuses for
ation and 80 TWh of sales by 2025 from gas-fired upstream opportunities.
power and renewables. It is striving to become a “Oil and gas is the engine of the energy tran-
“world leader” in renewables, with plans to have sition,” he said. “Oil and gas will continue to
35 GW of gross capacity in operation by 2025. It receive a major part of [investment] because we
will add 10 GW per year beyond that point. need to deliver cash flow from oil and gas to fund
Oil and gas production will be vital for fund- the growth we want to deliver in renewables and
ing these investments, although Total will work electricity,” he said.
to decarbonise its gas by developing biogas and Capital spending will be capped at a “cau-
hydrogen production, Pouyanne said. The com- tious” $12bn in 2021, versus $14bn this year, but
pany also plans to scale back its oil product sales, will climb to $13-16bn annually between 2022
partially replacing them with sales of biofuels. and 2025, Pouyanne said.™

P6 www. NEWSBASE .com Week 40 08•October•2020