Biggest energy firms still dominate, with Total’s billion-dollar Engie deal
Berlin/Paris — Total’s billion-dollar deal to buy liquefied natural gas (LNG) assets from Engie shows how much size matters in the industry. After Royal Dutch Shell’s takeover of BG Group in 2016, industry consultant Wood Mackenzie says the latest accord is evidence that the biggest energy companies with access to large volumes of diverse supplies will continue to dominate, even as commodity traders from Glencore to Trafigura Group are expanding. Trade in the $90bn market for the superchilled gas is poised to double by 2040, underpinned by surging demand from Pakistan to China to generate power instead of burning dirtier coal. The biggest advantage that integrated energy companies have is that they own the chain from gas fields to cooling terminals, and giant ships crisscrossing the oceans. "Because of their scale, scope and flexibility" such players are "best positioned to serve emerging-market buyers with complex needs," Frank Harris, vice-president for LNG consulting at Wood Mack...
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