In a significant move that underscores the evolving landscape of the energy sector, TotalEnergies has announced a major expansion into the gas-to-electricity arena. The French energy giant is acquiring a 50% stake in a portfolio of flexible power generation assets from Czech energy group Energetický a průmyslový holding (EPH), forming a 50/50 joint venture.
This €5.1 billion all-stock transaction not only accelerates TotalEnergies’ integrated power strategy but also positions the company as a key player in Europe’s transitioning energy market.
Details of the TotalEnergies-EPH Deal
The joint venture, announced on November 17, 2025, from Paris, will create a leading flexible position in Europe’s power generation sector. The portfolio includes over 14 GW of operational and under-construction flexible generation capacity, with plans to expand to 20 TW by 2030 through an additional 8 GW pipeline. Assets span Western Europe, including fired and biomass power plants in Italy, the United Kingdom, Ireland, the Netherlands, and France, valued at €10.6 billion enterprise value.
Under the agreement, EPH will receive the equivalent of €5.1 billion in TotalEnergies shares, approximately 95.4 million shares priced at €53.94 per share, representing about 4.1% of TotalEnergies’ share capital and making EPH one of the company’s largest shareholders. The transaction is expected to be immediately accretive for TotalEnergies shareholders, providing free cash flow per share of 1 B$/y down to 14-16 B$/y over 2028-2030.
This deal strengthens TotalEnergies’ position in supplying liquefied natural gas (LNG) to Europe, leveraging its strong U.S. and European assets. By integrating power generation with its gas-fired plants, batteries, and flexible power activities, the company aims to expand its customer base and capture added value across the energy value chain. The portfolio primarily includes 14 GW of gross capacity in gas-fired power plants, biomass, and battery systems, benefiting from secured capacity revenues in most profitable European electricity markets.
As Bloomberg columnist Javier Blas noted in a recent X post, this partnership with Czech billionaire Daniel Kretinsky’s EPH marks a “big push into gas-to-electricity business,” with the JV encompassing ~14 GW in gas, biomass, and batteries.
A Broader Trend: Oil Companies Diversifying into Power Generation
TotalEnergies’ move is part of a growing trend among oil and gas companies to diversify into electricity businesses, driven by surging demand from AI data centers, electrification, and the need for reliable, flexible power sources. This shift allows traditional energy firms to capitalize on their natural gas expertise while addressing the intermittency challenges of renewables.
Chevron’s Foray into Gas-Powered Data Centers
Chevron, a major U.S. oil producer, is also aggressively entering the power sector. The company recently selected West Texas as the site for its first natural gas-fired power plant dedicated to serving data centers, marking the start of a new business line to meet AI-driven electricity demands.
This 500-megawatt facility will bypass the traditional grid, feeding power directly to hyperscale data centers amid explosive growth in AI infrastructure.
Chevron plans to build multiple such off-grid gas plants, aiming to increase oil-and-gas production by up to 3% annually through 2030 while expanding into power.
The initiative is part of a broader strategy to leverage natural gas for high-demand applications, with the West Texas project expected to come online as early as 2027.
This move positions Chevron to benefit from the AI boom, where data centers are projected to consume vast amounts of electricity, often requiring dedicated, reliable sources like natural gas.
Liberty Energy’s Expansion into Modular Power Solutions
Liberty Energy, an oilfield services company founded by U.S. Energy Secretary Chris Wright, is making a decisive shift from traditional oil services toward power generation.
How Liberty Energy Plans to Power AI Data Centers and Dominate U.S. Energy with Gas + Nuclear
Known for hydraulic fracturing (fracking) expertise, Liberty now offers modular natural gas power generation solutions tailored for frac operations, data centers, and industrial applications.
The company has developed a pipeline to supply over 1 gigawatt of electrical power for AI-related hyperscalers.
In partnerships like its alliance with Oklo, Liberty’s Forte™ system provides initial reliable power and flexible energy management, integrating with next-generation solutions like small modular reactors.
Additionally, Liberty is deploying modular gas-fired “power blocks” at industrial sites in Pennsylvania’s Marcellus Shale region, ensuring dedicated power for energy-intensive operations.
Liberty’s focus on power generation aligns with its history of innovation in the energy space, hosting panels and discussions on electric innovation and future energy demand.
This diversification reflects a strategic pivot to meet the intersecting needs of oil, gas, and electricity markets.
Implications for the Energy Sector
These developments highlight how oil and gas companies are adapting to a world where electricity demand—fueled by AI, EVs, and data centers—is outpacing traditional supply growth. By integrating upstream gas production with downstream power generation, firms like TotalEnergies, Chevron, and Liberty Energy are creating resilient, integrated value chains that could stabilize energy markets and support the global transition.
As natural gas remains more than a bridge fuel, these moves may also attract investor interest in hybrid energy models that balance profitability with sustainability. For stakeholders in the energy industry, this trend signals opportunities for growth amid uncertainty, ensuring that reliable power remains at the forefront of innovation.
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