20 May 2026
TotalEnergies/EPH deal risks locking Europe into costly fossil gas imports – including LNG from Russia and the US
Key facts
- TotalEnergies intends to use the joint venture to dispose of two million tonnes per annum of Liquefied Natural Gas (LNG).
- Over five years, importing 2 million tonnes per annum (Mtpa) of LNG could cost Europe between €6.675 billion and €7.555 billion, mostly benefiting the US and Russian fossil industries.
- Europe’s LNG imports primarily come from the US and Russia – this venture is therefore deepening Europe’s dependence on these two countries.
- Over €4.08 billion of subsidies through capacity market contracts has been secured by TotalEnergies and EPH for the plants included in the joint venture between 2015 and 2024.
- With at least 53% of the joint venture’s gas plants being financed by capacity payments during that period, this merge is greatly exposed to regulatory risks linked to capacity markets.
Berlin, 20 May 2026 – The recently announced TotalEnergies and EPH’s joint venture – named TTEP – will effectively lead to the emergence of a new fossil gas giant, deepening Europe’s dependence on costly imported fossil gas, increasing energy bills and slowing down Europe’s clean energy transition. These are among the key findings of a report released today by Beyond Fossil Fuels (BFF), which debunks the so-called “flexibility” narrative pushed by both companies, and highlights the climate, geopolitical and financial risks associated with this endeavour.
TotalEnergies intends to use the joint venture to dispose of two million tonnes per annum of Liquefied Natural Gas (LNG), which is subject to well-known price volatility and environmental impacts. BFF estimates that, over a five year period, importing 2 million tonnes per annum (Mtpa) of LNG for the joint venture could cost Europe between €6.675 billion and €7.555 billion, benefiting mostly the US and Russian fossil industries.(1)
Based on 2025 generation figures, BFF estimates that in the coming five years the joint venture will produce climate emissions rivaling those Ireland or Denmark produce in a year.
Beyond Fossil Fuels campaigner Brigitte Alarcon said: “Everyone loses in this deal – except the oil and gas companies already cashing in big. In countries like Italy and the UK, consumers’ bills will increase, and Europe’s energy dependence will get worse. Far from putting Europe on the path of energy security, TotalEnergies and EPH will be engineering further dependency on fossil gas in general and LNG in particular under the bogus pretence of adding ‘flexgen’ capacity. This will cement Europe’s energy dependence on the whims of leaders like Putin and Trump in the process, in addition to the dire consequences on the continent’s economy.”
“The ongoing conflict in the Middle East has once again laid bare Europe’s fossil fuel addiction. While some European leaders are finally rushing to put together electrification plans, TotalEnergies and EPH have chosen to double down on fossil gas, propped up by private capital and subsidies like capacity markets, and setting up an entity whose emissions will rival those of the whole of countries such as Ireland or Denmark. Climate credibility demands action, and the ball is in the banks’ court: stop financing fossil fuel expansion and instead put money into affordable, homegrown renewables.”
Despite their own climate pledges and the worsening climate crisis, banks have committed over US$7.9 trillion to fossil fuels since the 2015 Paris Agreement, primarily funding projects via loans and bonds.(2)
Beyond Fossil Fuels’ report highlights that:
- The joint venture will operate a gas fleet whose capacity (12.5GW) is equal to that of Belgium, Denmark, Portugal and Sweden combined.
- Europe’s LNG imports primarily come from the US and Russia – this venture is therefore deepening Europe’s dependence on these two countries, locking the continent into continued economic and energy insecurity.(3)
- The two companies behind the joint venture highlight flexibility as a key feature of gas power generation. However the vast majority of their gas fleet is made of gas plants that use CCGT (combined cycle gas turbine) technology – which is seriously limited when it comes to providing flexibility in support of electricity demand coverage in a renewables-based power system.(4)
- At a time when taxpayers’ bills keep rising, the joint venture will co-opt subsidies that should be going towards supporting wind, solar and energy storage (over €4.08 billion of capacity market contracts has been secured by TotalEnergies and EPH for the plants included in the joint venture between 2015 and 2024). With at least 53% of the joint venture’s gas plants being financed by capacity payments during that period, it is greatly exposed to regulatory risks linked to capacity markets.
In addition to BFF’s findings, in its new report “Total Risk”, environmental and human rights group Urgewald exposes the grave geopolitical and economic risks behind TotalEnergies’ fossil fuel expansion strategy. The company plans to extract 4,178 million barrels of oil equivalent in countries with autocratic or ‘hybrid’ regimes – more than any other oil and gas major. A significant portion of TotalEnergies’ short-term expansion plans involve Mozambique, Uganda, and Iraq, three countries known for abysmal human rights track records, severely limited civil liberties, and political oppression. TotalEnergies is also rolling back its renewable business, with lower targets and stagnating investments.
In light of Beyond Fossil Fuels’ findings, banks should immediately stop providing financial services to this joint venture and to any companies developing new fossil fuel projects or infrastructure. Financial institutions should also stop financing the expansion of gas power and give their support only to companies that are committed to a genuine energy transition. This means backing only those power companies that immediately halt the development of new fossil gas projects, publicly commit to phasing out fossil gas altogether, and provide clear, short-term plans for shutting down their existing gas infrastructure.
To accelerate Europe’s energy transition, policy-makers should take several decisive steps. First, they should tax the windfall profits earned by fossil fuel companies during the energy crises, as five European countries called for earlier last month. At the same time, governments should phase out payments to fossil gas plants through capacity mechanisms and instead invest those resources in clean energy solutions such as long-duration storage, batteries, demand flexibility, energy efficiency measures and renewable energy sources. These would be concrete actions that would support Europe’s recently bolstered commitments to electrification. Member states must match these efforts by phasing out fossil fuels from their power sectors by 2035 or sooner, with coal gone no later than 2030.
Reclaim Finance campaigner Rémi Hermant said: “This alliance between EPH, Europe’s leading gas power developer, and TotalEnergies, Europe’s biggest LNG importer, is designed to ensure these companies continue to profit from, and prolong Europe’s dependence on fossil gas – fuelling the climate crisis and destabilising the economy. As governments increasingly look towards a more secure energy future that does not rely on gas imports, the warning lights should be flashing for the banks. They would be wise to exclude any financial support for TTEP, and for companies developing new gas-fired power plants.”
END
NOTES
More information in our media briefing “TotalEnergies/EPH joint venture will worsen Europe’s pricey gas import dependence”, May 2026.
- On 29 April, TotalEnergies announced that its net profits are up 50% this quarter (€4.96 billion), a sharp increase driven by rising prices of oil and gas as well as its trading activities, which benefited from price volatility in the context of the war in the Middle East. These results are also due to increased LNG production and trading activities capturing market volatility. These “windfall war profits” largely benefit the company’s shareholders, while tax payers see their energy costs escalate. Because of these exceptional profits, it is “highly likely” that TotalEnergies would be eligible in 2026 for a tax on large companies introduced in 2025. According to TotalEnergies CEO, Patrick Pouyanné, TotalEnergies will “not be able to maintain” its cap on fuel prices in the event of such tax.
- https://www.bankingonclimatechaos.org/wp-content/uploads/2025/06/BOCC_2025_FINAL4.pdf
- https://ember-energy.org/latest-insights/latest-energy-shock-reminds-europe-of-its-risky-gas-reliance/
- https://reclaimfinance.org/site/wp-content/uploads/2026/02/Reclaim-Finance-The-myth-of-gas-as-a-bridge-fuel-2026-02.pdf; https://beyondfossilfuels.org/2026/02/23/clean-flexibility-supports-a-reliable-grid-without-fossil-fuels/
CONTACTS
Beyond Fossil Fuels campaigner Brigitte Alarcon, brigitte.alarcon@bff.earth, mobile +33 641 288 759.
About Beyond Fossil Fuels
Beyond Fossil Fuels is a civil society network committed to ensuring a just and rapid transition to a fossil-free, renewables-based future. Building upon the Europe Beyond Coal campaign, its goal is for Europe to be coal-free by 2030 and phase out fossil gas from the power sector by 2035. A clean and flexible energy system will deliver lasting benefits for people, the climate and the broader economy. Beyond Fossil Fuels is a non-profit organisation with an office in Berlin, with staff spread across Europe. www.beyondfossilfuels.org
About Urgewald
Urgewald is an environmental and human rights organisation. It combines in-depth research with public campaigns to expose and cut destructive projects‘ financial lifeline. Urgewald‘s databases on coal, oil and gas provide the financial sector with effective divestment and climate protection tools. www.urgewald.org/en
About Reclaim Finance
Reclaim Finance is a research and campaigning NGO dedicated to issues at the intersection of finance and social and environmental justice, which works to reorient finance towards social and environmental imperatives. It was founded in March 2020 by Lucie Pinson, winner of the 2020 Goldman Environmental Prize and listed among TIME magazine’s 100 most influential climate leaders in business in 2023. The team, made up of around forty people, is mainly based in France, as well as in Berlin, London, Bristol and San Francisco. https://reclaimfinance.org/site/en/home/