TotalEnergies SE (TTE) just signed a joint development and operating agreement with TES and a trio of Japanese energy heavyweights for what could become one of the more interesting clean energy projects in the American heartland. The partners include Osaka Gas, Toho Gas, and ITOCHU, and together they're planning to build the Live Oak project in Nebraska.
So what exactly is Live Oak? It's a large-scale facility designed to produce electric natural gas, or e-NG if you prefer the shorthand (also called e-methane). This isn't your typical natural gas drilled from underground reserves. Instead, e-NG is synthetic gas manufactured from renewable hydrogen and captured CO₂. The clever part is that it's chemically identical to conventional natural gas, which means it can flow through existing LNG infrastructure without requiring any equipment upgrades for end users.
The Deal Structure
Under the terms of this partnership, the three Japanese companies will collectively own 33.3% of the Live Oak project. TotalEnergies and TES will each maintain a 33.35% stake, keeping the ownership structure nicely balanced.
What's Next for the Project
The partners are now moving into the Front-End Engineering Design phase, which is where the real technical planning happens. They're targeting approximately 250 MW of electrolysis capacity paired with 75,000 tons annually of methanation capability.
The timeline is fairly ambitious but structured. The companies expect to make their final investment decision in 2027, and if everything goes according to plan, commercial operations should kick off in 2030. When production starts, the e-NG will be exported to Japan, where Osaka Gas and Toho Gas will serve as the primary offtakers.
This project fits neatly into Japan's broader energy strategy. The country has set a target to inject 1% carbon-neutral gas, including e-NG, into its national gas grid by 2030. That might sound like a small percentage, but it represents a meaningful step for a nation heavily dependent on energy imports.
TotalEnergies' Busy Deal Calendar
The Live Oak project is just one piece of TotalEnergies' recent dealmaking activity. Earlier this week, the company announced that TotalEnergies EP Nigeria agreed to sell a 40% interest in the PPL 2000 and PPL 2001 exploration licenses to a Chevron Corporation (CVX) subsidiary.
Back in November, TotalEnergies disclosed plans to acquire a 50% stake in Energetický a průmyslový holding's flexible power generation portfolio at an enterprise value of 10.6 billion euros, or roughly $12.3 billion. That acquisition brings more than 14 GW of flexible generation capacity into the fold, including gas-fired plants, biomass facilities, and batteries that are either already operating or under construction.
TTE Price Action: TotalEnergies shares were up 0.24% at $65.79 during premarket trading on Tuesday. The stock is trading near its 52-week high of $65.97.
