TotalEnergies inks 15-year LNG megadeal to power Dominican Republic’s clean energy future

How will TotalEnergies’ LNG deal support the Dominican Republic’s energy future?

TotalEnergies SE has signed a long-term agreement to deliver liquefied natural gas (LNG) to Energia Natural Dominicana (ENADOM), a joint venture between AES Dominicana and Energas. The 15-year supply arrangement, announced on April 15, 2025, will begin in mid-2027 and provide 400,000 tons of LNG annually, with pricing indexed to the Henry Hub benchmark.

The LNG volumes will be used to fuel a new 470 megawatt (MW) combined-cycle power plant currently under construction in the Dominican Republic. This facility is expected to significantly enhance national electricity generation capacity while transitioning away from coal and fuel oil. By integrating LNG into its energy mix, the Dominican Republic is aiming to stabilise power supply, lower emissions, and meet rising electricity demand spurred by rapid urbanisation and economic development.

Natural gas-powered generation offers grid reliability and environmental advantages over conventional fuels, positioning it as a key component in the Caribbean nation’s energy transformation. The incoming plant will help meet baseload requirements, supporting both industrial and residential consumers.

Why is this LNG agreement significant for TotalEnergies and ENADOM?

For TotalEnergies, the deal represents a strategic offtake opportunity that aligns with its global LNG expansion plan. The company, already the world’s third-largest LNG player, holds a diversified portfolio of 40 million tonnes per annum (Mtpa) as of 2024, including liquefaction, shipping, and regasification assets across geographies.

Gregory Joffroy, Senior Vice President for LNG at TotalEnergies, described the deal as a “natural outlet” for the company’s growing United States LNG production. The integration of this supply stream into a long-term regional contract further strengthens TotalEnergies’ Atlantic Basin positioning while enhancing its downstream market footprint in the Caribbean.

ENADOM, meanwhile, gains a reliable supply of competitively priced natural gas to support its operational expansion. Chief Executive Officer Edwin De los Santos pointed to the deal as a reflection of investor confidence in the Dominican Republic’s energy sector and ENADOM’s growing role in delivering stable and sustainable energy solutions. The agreement reinforces the joint venture’s mandate to supply low-emission fuel while maintaining affordability and supply security.

What role does natural gas play in the Dominican Republic’s energy transition?

The Dominican Republic has been actively transitioning its energy portfolio from oil and coal towards natural gas and renewables. Historically, its power grid relied heavily on imported oil derivatives, exposing it to price shocks and supply disruptions. As part of its decarbonisation roadmap, the government has prioritised investment in natural gas infrastructure to enable a shift to cleaner-burning fuels.

LNG import capacity has been central to this strategy, with ENADOM playing a critical role in supplying power producers with natural gas via terminals and distribution networks. The new 470 MW plant, backed by the long-term TotalEnergies supply deal, is expected to be a major contributor to national generation, enabling the country to retire older, emissions-heavy plants.

The use of LNG supports grid reliability and energy independence, both of which are essential for economic development and investment attractiveness in a fast-growing market. As part of its regional leadership ambitions, the Dominican Republic is also emerging as a potential LNG hub, offering future re-export opportunities or inter-island distribution models.

How does this deal fit into TotalEnergies’ broader LNG and low-carbon strategy?

TotalEnergies aims to increase the share of natural gas in its overall energy mix to nearly 50% by 2030, a key pillar in its strategy to reduce carbon emissions and support global energy transition goals. The company continues to invest in infrastructure that supports LNG trade, including liquefaction capacity in the United States and regasification terminals across Europe.

The LNG segment is part of a larger diversification strategy that includes renewables, biogas, low-carbon hydrogen, and biofuels. TotalEnergies has also committed to eliminating methane emissions from its gas value chain and ensuring that its investments align with long-term sustainability targets.

The Dominican Republic agreement demonstrates how TotalEnergies leverages its integrated capabilities—from production to shipping to downstream distribution—while partnering with regional utilities to reduce carbon intensity in local markets.

What does this mean for LNG development in the Caribbean?

The ENADOM–TotalEnergies deal may serve as a regional template for other Caribbean nations seeking to decarbonise and enhance energy security. The Caribbean has long faced challenges related to expensive fuel imports and grid vulnerability. As US LNG supply expands and delivery costs fall, long-term contracts such as this one offer attractive options for small and mid-sized markets seeking stable supply.

Several countries, including Jamaica and Puerto Rico, have already begun exploring or deploying LNG infrastructure, with interest growing in islands such as Barbados and the Bahamas. This agreement may prompt new private-sector involvement and public-private partnerships, helping to establish LNG as a regional backbone fuel for power generation, transport, and industry.

What is the stock market sentiment around TotalEnergies following the deal?

As of April 16, 2025, TotalEnergies SE (NYSE: TTE) is trading at approximately $57.15 per share, positioning it near its 52-week low of $52.78 and well below its high of $74.97. This suggests a period of cautious investor sentiment, despite strong operational performance.

In its Q1 2025 outlook, TotalEnergies reported hydrocarbon output near the top of guidance, while the LNG division performed well under favourable pricing conditions. However, the company also flagged an anticipated $4–5 billion increase in working capital, a seasonal factor that may weigh on cash flows.

Analyst reviews have been mixed. TotalEnergies recently missed revenue and earnings expectations by 3.2% and 7.0%, respectively. However, forecasts remain strong, with 2025 revenue projected at $193.3 billion and earnings per share expected to grow 19% to $8.41. Redburn Atlantic upgraded the stock to a “Strong Buy,” and the average target price across major analysts is $72.42.

The company has also announced a 7% increase in its 2024 dividend and authorised $2 billion in quarterly share buybacks for 2025. These actions signal robust shareholder return policies, which could help support sentiment in the coming quarters.

What lies ahead for ENADOM and TotalEnergies?

With the heads of agreement signed, TotalEnergies and ENADOM are expected to finalise sales and purchase agreements (SPAs) that will define delivery, pricing, and operational protocols. The planned mid-2027 start allows sufficient time for infrastructure alignment and the commissioning of the new power plant.

The agreement solidifies TotalEnergies’ presence in the Americas and extends its LNG leadership at a time when geopolitical instability and decarbonisation policies are reshaping global energy markets. For ENADOM, the partnership secures a strategic supply channel and affirms its position as a central player in the Dominican Republic’s evolving energy matrix.

In a shifting global energy landscape, where gas is viewed as both a transitional and foundational fuel, this 15-year LNG supply deal underscores how cross-border partnerships are becoming essential to energy security, emissions reduction, and economic resilience.