Totalenergies says decision to attract investment needed to calm gas price

DOHA: Totalenergies CEO Patrick Pouyanne said on Saturday European gas prices would keep rising until a decision is made that Europe will use the fuel for the long term, which would lure investment.

Energy prices have surged since Russia, a major fuel exporter, invaded Ukraine on Feb. 24, prompting western sanctions and concern of supply disruption.

“It is very clear to me that the gas price in Europe will be higher tomorrow than it was yesterday,” Pouyanne told a panel at the annual Doha Forum in Qatar. European policymakers are working to phase out fossil fuel use to reach climate goals, but Pouyanne said the way to control price gains was to accept the need for gas to be part of the energy mix for the coming years.

“Do we accept gas as a transition fuel and that we need it for the next 20-25 years, then investors will come?” he said.

He added it was inevitable Europe, which is around 30% to 40% dependent on Russian gas, would seek other suppliers, necessitating costly investments in infrastructure such as liquefied natural gas (LNG) terminals.

Totalenergies is among the companies that have said they will not make any new investments in Russia.

It is seeking options for its existing Russian assets.

Gas prices surged further during the week after Russian President Vladimir Putin said Russia would seek payment in roubles for gas sold to “unfriendly” countries, adding to concerns supply could be disrupted.Qatar, one of the world’s top LNG exporters, said on Saturday the demands would not affect long-term payment plans in the oil and gas business.