TotalEnergies announced a major step in its gas-to-power integration strategy with an agreement to acquire 50%of EPH’s flexible power generation platform in Western Europe.The€5.1 billion all-stock transaction covers assets in Italy,the UK,the Republic of Ireland,the Netherlands,and France,and will be executed through the issuance of 95.4 million new TotalEnergies shares priced at€53.94 each.The share issuance represents about 4.1%of the company’s capital.
The agreement establishes a joint venture jointly owned by TotalEnergies and EPH.The JV will manage existing power assets and support further development.By aligning with TotalEnergies’established position in supplying liquefied natural gas to Europe,the partnership aims to enhance value creation along the gas value chain,particularly between the US and Europe.
The deal is expected to increase TotalEnergies’net electricity production by around 15 TWh annually,providing value equivalent to roughly two million tonnes per year of LNG.The acquired portfolio includes more than 14 GW of operational or under-construction flexible power capacity.These assets consist of gas-fired plants,biomass facilities,and battery systems,with secured capacity revenues contributing about 40%of total gross margin.The acquisition also includes approximately 5 GW of additional projects under development.
The new JV will serve as the preferred platform for TotalEnergies and EPH to expand flexible power generation in their target markets.Over the next five years,TotalEnergies expects additional available cash flow of around$750 million per year,surpassing the extra dividend obligations associated with the new shares.The company anticipates that its Integrated Power segment will begin contributing positive free cash flow and shareholder returns in 2027,moving ahead from the earlier 2028 forecast.
To reflect this accelerated inorganic growth,TotalEnergies revised its net capital expenditure guidance for 2026-2030,lowering it by$1 billion annually to a range of$14-$16 billion per year.Of this,$2-$3 billion will be dedicated to Integrated Power,while the company maintains its 2030 electricity generation target of 100-120 TWh.
TotalEnergies chair and CEO Patrick Pouyannésaid:“This acquisition marks another major milestone in TotalEnergies’strategy to build an integrated electricity player in Europe.By joining forces with EPH as part of a long-term partnership,we are accelerating the implementation of our Integrated Power strategy and strengthening our ability to provide reliable,competitive,and low-carbon energy to our customers by leveraging the complementarity of our renewable and flexgen portfolio.”
He added:“Given our position as the#1 gas supplier in Europe,this transaction enables us to fully capitalise on gas-to-power integration and create added value for our LNG chain,independently of oil cycles.We are convinced that this partnership will create lasting value for our shareholders and are also pleased to welcome a new long-term European shareholder who is fully committed to TotalEnergies’transition strategy.”
The transaction remains subject to legal procedures with employee representatives and regulatory approvals.Completion is expected by mid-2026.
