TotalEnergies said its liquefied natural gas business earned $1.9 billion in the third quarter, 2.3 times the second-quarter figure, as the Strait of Hormuz crisis lifted gas prices and Asia's benchmark, the JKM, averaged $22.80 per million British thermal units, up 31% from the spring.

For buyers in Tokyo, Seoul, Taipei and Singapore, the French group's numbers give a seller's view of the market they are paying into. The JKM, the spot price for LNG delivered to Northeast Asia, averaged more than Europe's TTF benchmark, at $21.50, according to the results release. That premium is what Asian utilities must pay to keep cargoes from turning toward Europe, which is heading into winter with storage to fill.

TotalEnergies published its results on Oct. 29 in Paris. Group adjusted net income rose to $9.1 billion from $6.0 billion in the second quarter, and Reuters reported that the figure beat the $8.3 billion average forecast of 12 analysts polled by LSEG. Most of the gain came from refining, where margins hit historic highs. The LNG unit was the fastest-growing piece in percentage terms.

TotalEnergies LNG earnings and the Hormuz effect

The Integrated LNG segment posted adjusted net operating income of $1.885 billion, against $807 million in the second quarter and $852 million a year earlier. Cash flow from the segment, excluding working capital, was $1.72 billion.

The company tied the jump to a 20% rise in its average LNG selling price, to $12.28 per million British thermal units, and to strong gains from LNG and gas trading. It cited the continuing conflict in the Strait of Hormuz and seasonal demand. Reuters reported in mid-October that the crisis had trapped LNG supply from Qatar and the United Arab Emirates, which together provide close to a fifth of the world market.

Volumes went the other way. Overall LNG sales fell 9% from the second quarter to 9.8 million tonnes, and hydrocarbon production for LNG dropped 7%, which the company put down mainly to planned maintenance at Angola LNG and at Ichthys LNG in Australia. LNG Prime noted that sales were also below the third quarter of 2025. Over nine months, LNG sales were 32.9 million tonnes, up 4% on a year earlier.

TotalEnergies' own selling price still trails the spot benchmarks by a wide margin. The company pointed to a lag effect in its pricing formulas, which pass recent moves in oil and gas prices through only gradually. It said it expects its average LNG price to rise above $14 per million British thermal units in the fourth quarter. It also said forward European gas prices remain in a bull trend ahead of winter.

What it means for Asian LNG buyers

Asia is both a customer and a supply base for TotalEnergies. The group pumped 261,000 barrels of oil equivalent a day in Asia-Pacific in the third quarter, down 7% from the second quarter. Its regional assets include a stake in the Ichthys LNG project in Australia.

The quarter also brought a new Asian supply deal. TotalEnergies set up an LNG marketing joint venture with Kumul Petroleum, Papua New Guinea's national oil company, covering 2.4 million tonnes a year, and signed a 1.5 million-tonne-a-year offtake agreement, according to the release.

For importers, the figures point to a tight winter. Europe and Asia are bidding for the same pool of flexible cargoes while Gulf exports are restricted. Reuters reported in mid-October that European gas prices had risen almost 40% quarter on quarter, and TotalEnergies said the Middle East conflict's drag on its own output, now under 5% of production, mainly reflects limited LNG exports through Hormuz. Japan has been restarting nuclear reactors, which reduces its need for imported gas.

TotalEnergies' rivals tell a similar story. Shell reported higher LNG sales on the same day and is expanding LNG Canada with Asian buyers in mind.

Buybacks and the fourth-quarter outlook

TotalEnergies approved share buybacks of $2.5 billion for the fourth quarter and another $2.5 billion for the first quarter of 2027, and kept its third interim dividend at 0.90 euro a share, 5.9% above last year's level. Gearing, its measure of net debt against capital, fell to 9.1% from 13.1% at the end of June.

The company said oil prices were still above $100 a barrel at the start of the fourth quarter. It confirmed net investment of about $15 billion for 2026. Reuters reported that the Paris-listed shares rose 0.9% in early trading on results day, against a 1.2% gain for the European energy sector.

The number Asian buyers will watch next is the realized price. The company has said it will top $14 for the October to December quarter. JKM prices this winter will show whether Asian buyers can outbid Europe for cargoes.