TotalEnergies stock rose 2.17% to €73.97 on March 17 after the company announced the start of production from the Quiluma offshore gas field in Angola, a move that is strengthening its LNG portfolio and reinforcing its long-term growth strategy. The stock has already delivered strong momentum, gaining 12.5% in the past month and surging 29.1% year to date, making this latest development even more significant for investors tracking global energy trends.
Quiluma project marks a key milestone in Angola
The Quiluma field is the first non-associated gas project in Angola, meaning it is developed specifically for gas production rather than as a byproduct of oil extraction. TotalEnergies holds an 11.8% stake in the project, alongside partners Azule Energy (37.4%, operator), Cabinda Gulf Oil Company (31%), and Sonangol E&P (19.8%).
At full capacity, the project is expected to produce around 330 million cubic feet of gas per day, which translates to approximately 2 million tons of LNG annually. This output will supply the Angola LNG plant, which exports liquefied natural gas to both Europe and Asia. More details can be found in the official project announcement release.
LNG expansion strengthens TotalEnergies’ global strategy
This project comes at a crucial time when LNG demand remains strong, especially in Europe as countries continue to diversify energy sources, and in Asia where consumption is steadily rising. By adding Quiluma to its portfolio, TotalEnergies is expanding its exposure to global LNG trade flows and strengthening its position as one of the leading gas-focused energy majors.
Unlike traditional oil-heavy portfolios, TotalEnergies has been actively shifting toward natural gas, LNG, and lower-carbon energy sources. Quiluma supports this transition by providing a stable and long-term gas supply, which is essential for meeting contractual LNG demand across continents.
Stock performance and valuation signals
The recent price movement reflects growing investor confidence, but valuation metrics present a mixed picture. At €73.97, the stock is trading about 1.6% above the analyst target of €71.27, suggesting limited short-term upside based on consensus estimates.
However, other indicators point to potential undervaluation. According to Simply Wall St analysis, the shares are trading around 61.8% below their estimated fair value, highlighting a significant valuation gap. Investors can explore broader valuation insights on Simply Wall St.
In terms of earnings multiples, TotalEnergies trades at a price-to-earnings ratio of 13.6, which is below the oil and gas industry average of 17.8. This discount suggests that despite strong performance and strategic expansion, the stock may still be relatively attractive compared to peers.
Momentum remains strong across timeframes
The stock’s recent gains are not isolated. Over the past week, TotalEnergies shares have risen 5.1%, while the one-month gain stands at 12.5%. Over longer periods, the company has delivered returns of 33.7% over one year, 58.2% over three years, and an impressive 145.9% over five years.
This consistent performance reflects both favorable energy market conditions and the company’s ability to execute large-scale projects while maintaining a diversified portfolio across oil, gas, renewables, and electricity.
Why Quiluma matters for long-term investors
Beyond immediate production numbers, Quiluma adds strategic depth to TotalEnergies’ business model. The project introduces a new source of gas supply in Africa, helping the company diversify geographically and reduce reliance on traditional production regions.
More importantly, LNG projects typically operate under long-term supply agreements, which can provide stable and predictable cash flows. As Quiluma ramps up production, it may contribute to improved earnings visibility and stronger financial performance in the coming years.
The linkage to both European and Asian markets also positions TotalEnergies to benefit from global demand shifts, making the project relevant not just regionally but across the international energy landscape.
Key risks investors should watch
Despite the positive outlook, there are risks to consider. One of the key concerns highlighted is the company’s relatively unstable dividend track record, which may be a factor for income-focused investors.
Additionally, while LNG demand is strong, pricing can be cyclical and influenced by global economic conditions, geopolitical developments, and supply-demand imbalances. Execution risk also remains, as the success of the project depends on consistent production, operational efficiency, and favorable contract terms.
What to watch next
Investors will now focus on how quickly Quiluma reaches its full production capacity and how effectively the gas is integrated into LNG export operations. Key metrics to monitor include production volumes, LNG pricing trends, and the project’s contribution to overall earnings and cash flow.
The company’s ability to maintain capital discipline while expanding its LNG footprint will also be critical. Any updates on long-term contracts or supply agreements linked to this project could further influence investor sentiment.
Market takeaway
TotalEnergies’ rise to €73.97 reflects more than just a short-term reaction to news. It signals growing confidence in the company’s LNG strategy and its ability to adapt to evolving global energy dynamics. While the stock is already trading near analyst targets, its relatively low valuation compared to peers and strong long-term growth drivers keep it firmly on investors’ radar.
The Quiluma project may not be a game-changing event on its own, but it strengthens the broader narrative that TotalEnergies is building a more resilient, diversified, and future-ready energy portfolio.
Make Swikblog your go-to source on Google for reliable updates, smart insights, and daily trends.
