Fenix: A Low-Emission Offshore Gas Project in Tierra Del Fuego

10/15/2024

On September 20, 2024, TotalEnergies announced that it was starting production from the Fenix offshore gas field off the coast of Tierra del Fuego two years after the final investment decision (FID). Featuring a production capacity of 10 million cubic meters of gas per day, Fenix reflects our commitment to contribute to a sustainable gas supply in Argentina.

Located 60 kilometers off the coast of Tierra del Fuego in Southern Argentina, Fenix is part of the Cuenca Marina Austral (CMA-1) concession, in which we hold a 37.5% interest, alongside our partners Harbour Energy (37.5%) and Pan American Energy (25%).

Contributing to a sustainable gas supply in Argentina

Home to Latin America’s third-largest economy, Argentina has a population of over 46 million inhabitants and holds the second-largest shale gas reserves in the world. In 2022, the country’s total energy supply was dominated by gas (49.4%), which was also the main source of electricity generation (48.8%). With a daily production of 10 million cubic meters of gas (almost 70,000 barrels of oil equivalent) for Argentina’s domestic market, Fenix is now capable of covering approximately 8% of the country’s natural gas requirements.

The Fenix development consists of a new unmanned platform, which is connected to the existing CMA-1 facilities. Gas produced at Fenix is sent through a 36.5-kilometer subsea pipeline to the TotalEnergies-operated Vega Pléyade platform. It is subsequently treated onshore at the Río Cullen and Cañadon Alfa facilities, which are also operated by the Company.

(1) Source: https://data.worldbank.org/country/argentina
(2) Total energy supply comprises all the energy produced in or imported to a country, minus that which is exported or stored (source: https://www.iea.org/countries/argentina/energy-mix)
(3) Source: https://www.iea.org/countries/argentina

A low-emission project in line with our Oil & Gas strategy

In an effort to meet the growing level of global demand for energy, we are launching new oil and gas projects. The aim is to maintain a reliable and more sustainable energy supply at an affordable cost, thereby creating conducive conditions to lead a just transition. Our main responsibility as a producer of hydrocarbons is to reduce the greenhouse gas emissions associated with producing oil and gas. Therefore, our new projects are designed to avoid emissions as much as possible, while keeping production costs down. Fenix perfectly illustrates this strategy. By using existing infrastructures, the project’s carbon intensity amounts to 9 kilograms of CO2 equivalent per barrel of oil equivalent (CO2e/boe), compared to an average of 13 kg CO2e/boe for our production activities.

Natural gas, a key energy source for the energy transition

For TotalEnergies, natural gas is a key energy for the transition: first of all, it plays a major role in electricity generation thanks to its flexibility and its ability to meet rapidly growing demand with the electrification of uses. Natural gas also emits half as much greenhouse gases as coal in electricity generation, which explains why it occupies a central position in the net zero roadmaps of many coal consumer countries.

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