US Solar Joint Venture Expansion
The agreement with KKR adds to the existing 1.4 GW portfolio held by the joint venture, which was established in 2025. The new 700 MW addition covers three utility-scale solar assets located in Texas and Ohio. These assets are expected to reach their commercial operation dates by the first quarter of 2027. The transaction reflects an enterprise value of $1.2 billion for the portfolio. TotalEnergies will retain operational control of the assets following the completion of the transaction, which is expected to close in 2026 subject to customary conditions.
The electricity generated by these new assets is either already sold to third parties or will be marketed by TotalEnergies. This expansion aligns with TotalEnergies’ broader strategy to build a competitive portfolio combining renewables with flexible assets. As of June 2026, the company holds more than 37 GW of gross renewable power generation capacity globally and aims to achieve over 100 TWh of net electricity production by 2030. KKR, which sponsors investment funds for private equity, credit, and real assets, will continue as an equal partner in the venture, focusing on disciplined investment approaches to generate returns through the growth of the portfolio.
Absheron Gas Field Development
In a separate but complementary move, TotalEnergies took a final investment decision on September 26 to commence full-field development of the Absheron gas field, located 100 km southeast of Baku in the Caspian Sea. The field, situated in water depths ranging from 350 to 550 meters, possesses estimated recoverable gas reserves of 140 billion cubic meters (Bcm). TotalEnergies operates the field with a 35% interest, alongside Azerbaijan’s state oil company SOCAR (35%) and XRG, the investment arm of Abu Dhabi National Oil Company (30%).
The development follows an Early Production Scheme (Phase 1) which achieved first gas in 2023. Phase 1 utilizes a single well (ABD-001) tied back via a 35-km subsea pipeline to a shallow-water processing platform adjacent to SOCAR’s existing Oil Rocks facilities. This phase is designed for long-plateau production, yielding approximately 150 million cubic feet per day (MMcf/D) of natural gas and 12,000 barrels per day (B/D) of condensate, primarily serving Azerbaijan’s domestic market.
The new full-field development, designated as Phase 2, is expected to begin production in 2029. It involves the subsea development of three additional deepwater wells, tied back through a 140-km subsea multiphasic pipeline to newly built onshore facilities in Sangachal. These facilities will be located approximately 4 km southwest of BP’s existing Sangachal terminal. At plateau, Phase 2 is projected to produce 12.7 million cubic meters per day (4.5 Bcm/year) of natural gas and an initial 35,000 B/D of condensate.
Combined with Phase 1, the Absheron field’s total production is expected to reach 6 Bcm/year of natural gas and 47,000 B/D of condensate. This expansion is strategically significant for regional energy security. By satisfying domestic demand and supporting export commitments to Turkey, the development allows Azerbaijan to optimize capacity on the Southern Gas Corridor (SGC) system. This infrastructure currently serves as the primary route for gas exports to the European Union. TotalEnergies stated that the expansion maximizes Baku’s ability to meet its gas export obligations to Europe while securing local supply.
Supply Chain and Infrastructure
Supporting the Absheron development, TotalEnergies awarded a major contract to Vallourec for the supply of tubular products. The contract covers more than 16,000 tons of materials, including oil country tubular goods (OCTG) and approximately 159 km of line pipe. The OCTG package includes premium tubulars equipped with VAM SLIJ-3 semi-flush connections, designed for demanding offshore applications, along with completion accessories and the CLEANWELL dope-free technology to reduce environmental impact. The line pipe scope includes anti-corrosion coating suitable for both onshore and offshore applications. Vallourec will provide local operational support through its VAM Caspian subsidiary to ensure delivery schedules are met for the complex offshore project.
The next major milestone for the Absheron project is the commencement of construction for the new Sangachal processing facilities, with production from Phase 2 targeted for 2029. In the US, the focus shifts to the construction and commissioning of the three new solar assets in Texas and Ohio, with commercial operation expected in early 2027.
