French energy giant TotalEnergies, one of the world’s largest LNG players, reported a drop in its average price for equity liquefied natural gas sales in the first quarter of this year.
TotalEnergies said on Tuesday the average LNG price was $9.58/MMBtu in the January-March period, down by 6.8 percent compared to $10.28/MMBtu in the previous quarter.
The average price dipped compared to $13.27/MMBtu in the first quarter of 2023, while the company’s average price was $9.56/MMBtu in the third quarter last year and $9.84/MMBtu in the second quarter.
TotalEnergies said in its 2023 results report that its average LNG selling price should be stable around $10/MMbtu in the first quarter of this year given the evolution of oil and gas prices in recent months and the lag effect on price formulas.
The company’s integrated LNG adjusted net income reached about $1.46 billion in the fourth quarter, a drop of 40 percent compared to the fourth quarter in 2022.
Also, TotalEnergies sold 11.8 million tonnes of LNG, down 7 percent compared to 12.7 million tonnes in the same period last year, and a rise compared to 10.5 million tonnes in the prior quarter.
“Due to the low volatility during the first quarter 2024, oil and LNG trading results are expected to be in line with their historical averages,” TotalEnergies said on Thursday.
Also, the French firm said that it expects its oil and gas production to be stable quarter-on-quarter, above 2.45 Mboe/d, despite the Canadian oil sands assets disposals effective during the fourth quarter 2023, thanks to the growth in LNG production and the startups of Mero 2 in Brazil and Akpo West in Nigeria.
TotalEnergies plans to release its results for the first quarter on April 26.