Finance
TotalEnergies targets power trading boost with $6 billion Kretinsky gas plant deal
Published by Global Banking & Finance Review®
Posted on November 17, 2025
3 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 17, 2025
3 min readLast updated: January 21, 2026
TotalEnergies acquires 50% of EPH's power portfolio for $6B, enhancing its electricity market presence and boosting power trading.
By America Hernandez and Alban Kacher
PARIS (Reuters) -TotalEnergies said on Monday it would more than double its net gas generation capacity by acquiring 50% of Czech energy company EPH's Western European flexible power generation portfolio in a 5.1 billion euro ($5.9 billion) all-stock deal.
The French oil major wants to become a leading global integrated electricity player, combining renewables and gas-fired generation to meet rising demand from sectors such as data centres while increasing power trading profits.
EPH, which is majority-owned by Czech billionaire Daniel Kretinsky, will get 5.1 billion euros in newly issued TotalEngergies shares, making it the French company's third-largest investor with about 4.1% of its capital.
This would put it behind Total's employees with 8.9% and Blackrock at 6.7%, LSEG and company data show.
"This positions us as one of the largest electricity players in Europe, boosts our clean power sales ... and gives a new dimension to our trading business," TotalEnergies CEO Patrick Pouyanne told investors on a call.
TotalEnergies shares were up 0.6% to 56.57 euros at 1241GMT.
'REASONABLE PRICE'
TotalEnergies has been under investor pressure to accelerate disposals and lower its debt after more than $3 billion in acquisitions this year.
But it has also been hunting for opportunities to buy more gas-fired power plants, which are paid handsomely to produce when renewable energy stops.
Bernstein analyst Irene Himona called the price "reasonable" and said it would take TotalEnergies five to six quarters to buy back the shares, assuming an oil price at $65 per barrel.
The deal creates a 50-50 joint venture managing a more than 14 gigawatt portfolio of gas-fired and biomass plants and battery systems across Italy, Britain, Ireland, the Netherlands and France.
TotalEnergies will contribute about 2 million tons of liquefied natural gas annually to produce power at the plants, generating 15 Terawatt-hours (TWh) that it can market to consumers or trade.
It said the assets would help its Integrated Power unit generate cash flow from 2027, rather than 2028.
RBC analyst Biraj Borkhataria said that given Total's target of boosting electricity production to 100-120 TWh by 2030, the deal "effectively derisks a significant portion of the growth .. [by] front-loading the spending, with the acquisition price effectively offset by $1 billion lower capex over 2026-2030".
KNOWN PARTNER
Kretinsky, one of Europe’s mostprominent energy and media investors, has built one of the continent's largest energy holdings over the past two decades by snapping up coal, then gas-fired assets that utilities were selling to improve their green credentials.
TotalEnergies has previously done gas plant deals with EPH in Britain and France.
Pouyanne said Kretinsky requested payment in shares, expressing a desire to become a long-term shareholder, notably due to Total's green investments, which outpace other majors.
"Through the shareholding ... we are implementing our strategic ambition to diversify our geographic exposure, currently concentrated in the EU and UK," Kretinsky said in a statement.
Completion of the deal is expected by mid-2026, subject to regulatory approvals.
($1 = 0.8613 euros)
(Reporting by America Hernandez in Paris, Alban Kacher in Gdansk; Editing by Emelia Sithole-Matarise, Dominique Patton, Alison Williams and Alexander Smith)
Gas generation capacity refers to the maximum amount of electricity that can be produced from gas-fired power plants. It is a crucial metric for energy companies to assess their production capabilities.
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity, sharing profits, losses, and control.
Liquefied natural gas (LNG) is natural gas that has been cooled to a liquid state for ease of storage and transport. It is used as a cleaner alternative to other fossil fuels.
Renewable energy sources are energy sources that are replenished naturally, such as solar, wind, hydro, and geothermal. They are considered more sustainable compared to fossil fuels.
Power trading involves buying and selling electricity in wholesale markets. It helps balance supply and demand, allowing energy producers and consumers to optimize their costs.
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