TotalEnergies expects to report strong third-quarter results later this month as the Middle East conflict has driven up refining margins and LNG prices in a bull market, the French oil and gas supermajor said on Thursday. TotalEnergies said in a trading update its European refining margin soared to as much as $33.20 per barrel in the third quarter, nearly tripled from $13.50 for the second quarter, and quadrupled from the $8.40 refining margin in the third quarter last year. “Downstream results and cash flow are expected to reach exceptional…
LNG Market Background
The global LNG market has undergone a structural transformation in recent years, with U.S. exports reshaping trade flows and providing consuming nations with greater supply optionality. European buyers have accelerated long-term LNG contracting following the disruption of Russian pipeline gas supplies.
New LNG liquefaction capacity — from the U.S. Gulf Coast, Qatar's North Field expansion, and Australian projects — is expected to add significant supply volumes through the late 2020s, with implications for long-term contract pricing and spot market dynamics.
What to Watch
Stakeholders will be tracking spot LNG cargo pricing in Asian and European markets, liquefaction plant utilization rates, and upcoming long-term supply contract negotiations as global LNG trade flows continue to evolve.
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