The long-term liquefied natural gas (LNG) import contracts that ENGIE increasingly relies on contribute to the development of new LNG export terminals, in contradiction with credible decarbonization scenarios (1). At the risk of seeing stranded assets multiply or locking the company into a trajectory of climate chaos, ENGIE\u2019s investors must oppose this strategy by voting against the re-election of Catherine MacGregor as director and against the \u00ab\u00a0Say on Climate\u00a0\u00bb (SoC) at the company\u2019s General Assembly.<\/p>\n<\/div>
The long-term LNG import contracts (2) are the cornerstone of LNG expansion: they secure planned export terminal projects and guarantee markets for growing production, leading to the exploitation of new fields. European buyers, such as ENGIE, play a major role in this regard, having signed numerous LNG import contracts since 2022 related to planned projects, notably in the United States (3). The signing of such contracts, which lock in substantial LNG volumes for decades, undermines the goal of limiting global warming to 1.5\u00b0C\u2014 a concern that ENGIE seems to dismiss.<\/p>\n<\/div>
Between 2021 and 2023, ENGIE signed at least three new contracts (4) in addition to the three currently in place, which were signed between 2012 and 2018 (5). These new contracts extend beyond 2040 and involve importing shale gas from the United States. They are linked to new LNG export terminals and are necessary to secure financing for these projects (6). However, these terminals should not be built: the International Energy Agency (IEA) has repeatedly stated in its Net Zero Emissions by 2050 scenario that new LNG export terminals are incompatible with a 1.5\u00b0C pathway (7).<\/p>\n
By signing these contracts, ENGIE also promotes the exploitation of new fossil gas fields and associated infrastructure, thereby locking-in a highly carbon-intensive trajectory. The boom in LNG demand, to which ENGIE contributes through its contracts signed in the United States, is one of the major reasons for the rapid growth of gas exploitation in the Permian Basin (8). This growth is accompanied by the construction of new pipelines (9).<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n The most recent contract signed by ENGIE involves purchasing fossil gas from Sempra for 15 years from Port Arthur LNG (10), a terminal under construction that is expected to begin operations in 2027. Kinder Morgan plans to develop the Trident Intrastate Pipeline to transport gas from the Permian Basin to the Port Arthur area, with commissioning scheduled for the same time as the first phase of the Port Arthur LNG terminal (11).<\/span>\u00a0<\/span><\/p>\n<\/div> The signing of these contracts contradicts ENGIE\u2019s commitment to the energy transition. They involve gas extracted by hydraulic fracturing (12), associated with particularly high methane emissions\u2014U.S. LNG is more emission-intensive than coal (13).<\/p>\nENGIE\u2019s contracts are incompatible with European decarbonization objectives<\/h2><\/span>