Good morning. Welcome, and thank you for joining the TotalEnergies 2022 Results and 2023 Objectives webcast. At this time, I would like to turn the conference over to Mr. Patrick Pouyanné, TotalEnergies Chairman and Chief Executive Officer, and Jean-Pierre Sbraire, TotalEnergies Chief Financial Officer. Please go ahead, sir.
Good morning. Good afternoon, wherever you are. Welcome to TotalEnergies 2022 Results and 2023 Objectives. We are presenting from Paris in all virtual mode. Our program today, we will start with a safety moment with Thierry Pflimlin, our President, Marketing and Services. Patrick and Jean-Pierre will drive us through the results of last year and the objectives set for 2023. We'll have a Q&A session. For now, a safety moment with Thierry.
Good morning. I've chosen a safety moment to speak about the fatal accident which happened during rebranding work at service station in Burkina Faso last year. Let's start with a description of this sad accident. On April 27th, in our service station in Ouagadougou, two operators from a contracted company moved a mobile scaffolding between the totem and the station canopy in proximity of a 15,000 volts overhead power line.
The third operator, who was the sole victim, helped them, but his leg hit a security barrier at the same time, and he became a conductor of the current when the electrical arch occurred. This third operator collapsed due to electrocution. He died on the spot despite the car-cardiac messages performed. Kader was 26 years old.
The in-depth inquiry made following this dramatic accident showed that the work procedure was respected before the start of the work, including pre-visit and risk analysis, pointing on the nearby presence of overhead power lines and the need to move the scaffolding in unmounted position. On the day of the accident, the specific works permit had been signed. What went wrong?
The investigation of the accident identified two key non-compliances with the work statement. Inappropriate decision by the operator to reduce the height of the scaffolding rather than dismantle it in order to go safely under the power line, and failing supervision at the moment of the accident because the person in charge of this supervision was distracted in a phone conversation. How did we react? We immediately suspended rebranding work worldwide on a site with presence of overhead power lines.
A return experience was issued and explained to define the conditions for restarting the works with four main points. First, the obligation to always consider as a priority isolation by the electrical network company. Second, the guarantee of minimum lateral safety distances with specific surveillance. Third, the strict control with competent supervisors. The last one, which most probably is the most important one, no scaffolding under live power lines.
This fatal accident shows that we must push further the appropriation in the field of our safety rules and programs, and this has to apply to our teams and to our partner companies. I'm convinced that we must pursue in this way to improve our safety culture. Thank you for your attention.
Thank you. Thank you, Thierry, for this safety moment. I will come back obviously on safety. Before, just to introduce this presentation to this morning about our results in 2022 and the objectives for 2023, I just would like to underline that, in fact, this year, 2022, has demonstrated once again the consistency of the multi-energy strategy that we are following consistently within TotalEnergies for many years. On oil, we continue to invest in oil in order to maintain our production, to capture opportunities like the one in Brazil.
We are, of course, driven by the fundamental objective for many years to keep our breakeven under $25 per barrel. It was 24 and a t $100 per barrel, like it was the price of our price last year, we have the full benefit. On LNG and gas, we embarked in a bold strategy in order to become a very large player. We have, by the way, in 2022. Manage 48 million ton of LNG, which is more than 10% of the market, which was 400 million tons, 12% exactly, with strong positions in Europe. This strategy is delivering, of course.
This integrated strategy, of course, results in a exceptionally high gas price environment, which was around $200 per barrel. Integration is about also refining with $100 per ton, exceptional refining margins, but very high utilization rate, 82%, and the benefit is there. Last but not least, electricity, which I've demonstrated that there is room for price increase in these markets as well, in which we are investing for the future. Consistency, resiliency, integrations are the key of our strategy.
Today, in order to continue to demonstrate that of with transparent and with profitability, we want to deliver to all our investors, we have announcing that you will have from this beginning of 2023, a clear transparency on two segments, which are the pillars of our growth, Integrated LNG on one side, Integrated Power on the other side. I would like to underline also in this introduction the, I would say, superior results that TotalEnergies is delivering.
We'll come back on it, but you will notice that we have the strongest net cash flow per share increase among all the majors, and by far, and we have the strongest Return on Average Capital Employed of more than 28%, which demonstrates that we can combine profitability, strong profitability, and transition to new energies.
I would also say that this year is giving us, we'll come back on it, but, a big strong guarantee for the future by the deleveraging of the balance sheet, which allow us to express a very clear framework of return to shareholders in last September, which is a clear framework of return to shareholders through the cycles. We announced by 35%-40%. We delivered 37% of cash payout to shareholders in 2022. Thanks to a policy which is clear and at which we board of directors has decided to even reinforce, first, a support to the ordinary dividend through the cycles, thanks to the buybacks we execute, but also to the underlying cash flow growth.
We have announced that we will increase by more than 7.25% the residual, the final dividend quarter and the next quarterly dividends in 2023, but also continuing our buyback program with $2 billion as previously quarter, no decrease despite a lower environment. Final, last but not least, room for special dividend like we've done in 2022, if we have super, I would say, ex super profits like people said. No zigzag in our strategy, consistency, and that's the key for, I would say, the future results and profitability. This is what we will demonstrate today together with Jean-Pierre.
If I move forward first on safety after the safety moment, of course, at TotalEnergies, we repeat this message very often, safety is a core value and comes first because safety requires discipline, and discipline is at the core of operational excellence. That's this continuum that we insist on. I would say that on the one hand, we can be proud of implementing for the company of safety culture, which has led to a significant decrease in the accident rate as measured and shown here by the what we call the total recordable injury rate.
We are today managed in the last decade to become among the best in the major, if not the best. There is a big but. On the other hand, we report with deep regret that there were three fatalities in 2022, which I consider unacceptable. We see as a sign that we must do more to strengthen our safety culture. To be sure that this culture is really embedded all over the world in all our operations, wherever they are, whatever they are. We purposely show on these slides the details of the three fatalities as well as the steps we are taking on a continuous basis to address and mitigate these ever-present risks.
We'll talk today about our strong 2022 results. It's a fact, understand that we carry the knowledge of this facility like a weight on our shoulders, and therefore, we as a company and I as a leader cannot be completely satisfied that we were as successful last year as we should have been. 2022 is definitely a year, as I said, where we have managed to get the most out of our assets in different businesses.
Of course, first, this year was the year of LNG, I would say, which become a star in many around the world because suddenly, because of our invasion of Ukraine by Russia and the impact on the European gas, we European market needs more gas. We were in a strong position, the first U.S. exporter, the first Europe regas holder.
We have used a lot these regasification capacities in Europe, 86%. We have increased our LNG sales by 15%, 14.8 million ton. Integrated all the other success, as I said, is a very strong utilization rate of our refining system, more than 80%, 82%. In a market which was really quite high, thanks in particular to distillates, we managed to capture a very high refining margin and our downstream business has reached a record cash flow generation.
We have also been able to consolidate these assets through some smart M&A, like the one we've done in Brazil at the end of 2021, where in a year after it generated more than $700 million of cash flow. Of course, 2022 successes also to prepare the future in all these operation. Preparing the future is yes, of course. You will not see in this presentation the word Russia. Russia is behind us. We have been able to build the future in LNG through the successes of becoming the largest international player in North Field East and North Field South Qatar projects.
We also have, say, underlined the success that we had in exploration, oil exploration. We come back on it in Namibia and Suriname. That's also part of our future and future profits. Last but not least, smart M&A to consolidate on integrity or integrated power businesses. Why I say smart M&A? Both are characterized by the well, fact that it's direct negotiations to obtain in attractive conditions, strong position in the U.S. on the one side with Clearway Energy, in Brazil with the other side.
All these successes about growing our production, growing our energies, is also we keep in mind that we have at the same time to lower our emissions. You will see the results knowing that we'll come back end of March with our sustainability climate report deeply in details of our, I would say, net zero ambition. At the end, this is a slide we introduced in September, but which is for me the result and give me again the strong comfort for the future is that yes, we had a record cash generation.
What is important to me is that we when you compare the 2022 cash generation to 10 years ago, 2012, with even a higher oil price, we have almost, w e have increased our cash generation by more than 50%, thanks to the strong decrease of the breakeven. The challenge now is to maintain this breakeven under $25 per barrel by the selection of assets, by the action on costs, despite some inflationary environment, and we'll manage it. Of course, thanks to this cash flows, we allocate quite a lot, like Jean-Pierre will tell you, to deleverage the company, and that's the best guarantee for the future. I will leave the floor to Jean-Pierre to describe in detail these 2022 results.
Thank you, Patrick. I will concentrate my comments on 2022, a year when we establish new records, thanks to perfect match between, on one side, our well-positioned assets, and with no surprise, we talk about gas and energy, and on the other side, very favorable markets which have set new records in 2022. The 2022 environment provided favorable tailwinds for all our activities. Normally, there is a mix of positive and negative. It was not obviously the case in 2022. We were able to fully leverage the strength of our global integrated portfolio. Patrick will cover the macro later on, I will not come back on the rational. Our oil price sensitivity is sometimes underestimated.
Clearly in 2022, we benefited strongly for the rise in oil prices, thanks to our low breakeven, low cost portfolio, which allow us to capture this price increase. Please note, as Patrick already mentioned, that in 2022, we have the strongest increase of net cash flow per shares among major. I will show you the data later on. Refining margins are linked to oil. We saw in 2022 massive supply disruption, particularly affecting middle distillates related to sanction in Russia and more recently to the European embargoes on both crude and oil products.
For gas and LNG, it is a similar story. The Russia-Ukraine war drove gas and LNG prices to never before seen levels as Europe scrambled to decouple from Russian pipe gas by importing additional 50 million tons of LNG last year. This represents more than 10% of the markets. Across all our business in 2022, markets were favorable. Here you see the list of key metrics demonstrating that for 2022, we talked the talk, we walked the walk. A slight miss on production, mainly due to security issues in Niger Delta, some delays in projects and the price effect on our PSCs.
Better than expected performance for refining. You see 82% utilization rate in 2022. LNG sales, four million tons target, four million tons above target because of intense LNG spot business in Europe, we maximize the value of our regas capacities. Renewables as well. While at the same time meeting our Scope 1 plus two emission reductions despite high utilization of CCGTs in Europe.
As announced in July, investment came in above 2022 objective at $16.3 billion. This reflects increased short-cycle activity to benefit from the strong price environment, higher net acquisitions, mainly for oil in Brazil and renewables in the U.S., but no meaningful impact from inflation. I think a great bottom line for shareholders, a + $1 billion of underlying cash flow growth, a key element, as you know, supporting dividend growth, and $47 billion of debt adjusted cash flow in 2022.
Let's move to IGFP results. IGFP adjusted net operating income was $12 billion in 2022, almost doubling compared to 2021. Thanks again to fully integrated LNG, which position us to maximize the capture of the high price environment, but also thanks to strong growth in integrated power generation.
Cash flow globally at the level of I GFP was $11 billion, up 76% year-on-year. You have here a very important message on that slide. To provide a better understanding of the growth strategy of LNG on one side and electricity renewable on the other side, the board has decided to split I GFP into two new segments from the first quarter 2023. That mean that from that date, we will report separately integrated LNG and integrated power.
Integrated LNG is comprised of our LNG assets, gas and energy trading, plus biogas and hydrogen. Integrated power is comprised of renewable and flexible power generation, power trading, plus power and gas marketing. We provide you here with some metrics for these two segments, 2022 versus 2021.
For ILNG, sales were up 15% to 48 million ton in 2022, thanks to our number one position in European regas, which allowed increased spot purchases and sales in the context of record LNG demand in Europe. Cash flow increased to $10 billion, up nearly 80%, and Adjusted net operating income was $11 billion, doubling the contribution compared to 2021. IPower generated $1 billion of cash flow and earnings over 2022. Production was 33 TWh, up 57%, thanks to higher utilization rate of CCGTs in Europe and a 53% increase in power generation from renewables.
At year-end 2022, we had 17GW of renewable capacity installed. A lot of you have been asking for this split to better understand our two fastest growing activity, LNG and integrated power. We are happy to do it from 2023. In nearly every way, 2022 was a record-setting year for TotalEnergies. Benefiting from the favorable environment, the increase in energy sales plus 15%, and thanks to our unique position in Europe, TotalEnergies generated a very positive adjusted income at $36.2 billion in 2022.
Including nearly $15 billion of impairment related to our Russian upstream assets, our reported IFRS net income was $20.5 billion in 2022. Return on quity was 32% and ROCE Return on Capital Employed 28% in 2022. This demonstrating again the quality of our portfolio and the capacity of TotalEnergies to benefit from a price increase. Along with record earnings, TotalEnergies generated $46 billion of cash flow in 2022, a all-time high, shown on the left side of the slide, split by segment.
All segment made stronger cash flow contribution in 2022. $26 billion from E&P, up 39% on higher oil and gas prices, and despite the U.K. windfall tax profits, which has represented in 2022 $1 billion. $10 billion from LNG, a record high that we covered on the previous slides. $10 billion from downstream, driven by the contribution from refining of close to $8 billion, more than 2.5 times contribution in 2021, thanks to higher refining utilization rates that allow us to capture high margins. And $1 billion, an important milestone for Integrated Power.
On the right, we show the cash flow allocations, which was pretty evenly divided among shareholders, investments, and debt reduction. $17 billion return to shareholders representing 37.2% payouts, delivering on our 35%-40% commitments. Comprised of $7.3 billion for the ordinary dividends, plus $7 billion of buybacks and $2.7 billion of special dividends that was paid in December. $16.3 billion for investments, I will cover that in the next slide. $14.5 billion of net debt reduction, which cuts our gearing by more than half, 7% end of 2022 compared to 15.3% end of 2021.
The 2022 environment allow us for all our segments to demonstrate their strong underlying potential. Typically, with an integrated model, we count on strength in one activity to offset possible market challenges in another. In 2022, each segment had a chance to shine.
Capital investments came in at $16.3 billion in 2022 above the guidance $14 billion-$15 billion, mainly due to an acceleration of short cycle projects in West African countries, but also in the North Sea, in order to benefit in 2020, 2023, 2024 from a good environment. $ 5.9 billion of smart acquisition, notably in Brazil for oil and in the U.S. for Integrated Power. Also included here are divestments for $1.4 billion, mainly from ongoing farm down activities, which is key to the profitability of Integrated Power. For example, in that figure, you have the farm down of 50% of a 230 MW portfolio of renewable in France, but also partial sales of our CCGT in Landivisiau, also in France.
In that figure, you have also the sales of some E&P mature assets, notably our interest in Block 14 in Angola, but also the Sarsang field in Iraq. Important to note that inflation did not have meaningful impact on 2022 increase in CapEx. We remain disciplined on capital with strict criteria for sanctioning projects. I will give you more about that on the next slide. Important to say that we determined last year, particularly in light of the rapid strengthening of our balance sheets, that passing on the opportunities noted here would not serve our shareholders' best interests.
To the right, we split 2022 investments by type of activity. Oil generated most of our cash flow, and we allocated about 60% of CapEx to it, splitly, split between 60%, 40% between maintenance and growth. A big piece, $2.8 billion of that growth was for Sépia and Atapu, the deep offshore field in Brazil. Integrated power and low carbon energy, including of course the Clearway acquisition, was $4 billion, representing 25% globally of the CapEx in 2022. Integrated LNG represented the balance of roughly $2 billion, reflecting the timing of expenditure as Qatar NFE and Qatar NFS was not recording in 2022.
It will be the case in the first quarter 2023. When prices increase, cost might follow. However, 2022 cost inflation was not so severe in our key regions and activities, except of course energy costs, but we benefited of price increases. There are some upward pressure shown on the right in that slide, but we effectively controlled it in 2022.
Using ISA 9032 OpEx as a benchmark, TotalEnergies continues to be the lowest cost producer among the major at about $5.5 per barrel equivalent. On an ongoing basis, we benefit from a high quality global portfolio that allow us to leverage on purchasing power to negotiate favorable contracts with suppliers and service companies. On deep offshore day rates, we signed medium duration contracts that largely insulates us from inflation in 2022.
Nearly all of our rates are set about the same level for 2023, with option taking us into 2024 at good prices. For new projects, we adhere to strict selection criteria shown on the right to maintain the high quality of the portfolio in terms of average costs, but also in terms of emission per barrel as well.
Important to note that our criteria on emission per barrel will be more severe in the future as the portfolio average has lowered to 19kg CO2 per barrel equivalent. In terms of the constant progress of the high grading the portfolio, for example, adding low cost barrels in Brazil last year at Atapu and Sépia, implementing the spin-off of our E&P subsidiaries in Canada with higher cost barrels this year, will reduce our overall cost per barrel in the future.
To conclude the 2022 result presentation, where you have here the benchmark of performance of TotalEnergies versus the other four supermajors. In terms of growing net cash flow per share, you see here the data, we were the strongest by far, doubling it to almost $13 per share. Similarly, TotalEnergies was best in class for profitability with 28% return on capital employed.
For the three years return to shareholders, we outperform our European peers by maintaining the dividend in 2020. In 2020, we haven't cut the dividend in the middle of the COVID crisis and ended up trailing our U.S. peers. To conclude, based on the Sustainalytics ranking, TotalEnergies has the highest ESG rating among the super majors.
We consider that this continues to be an important factor in terms of ESG leadership through this period of growth and transformation. In summary, a necessary cure for the company, a big step up in terms of financial strength and flexibility, in large part due to the strategy that position us to fully benefit from the 2022 favorable market environment. With that, I leave the floor to Patrick. Thank you.
This slide demonstrates that you can really deliver at the same time superior results and sustainability if there is no opposition between both of us. Executing strategy, of course, will be the motto for 2023. Just some words about the environment. Of course, the price today of oil is no more at $100, but more around $80. I would say when we look to the trends of the oil markets, for me, there is some uncertainty on the demand in particular because there is a feeling, even this feeling maybe is disappearing a little of a risk of what we call recession, global economy slowdown.
Again, this feeling today is a little erased because of what we observe in China and of course on the energy markets, either oil or gas. The Chinese recovery, economy recovery will be fundamental, easing of lockdown restrictions. What is clear, by the way, and I know that in our world of oil and gas, there is a new Bible, which is a net zero scenario of IEA, which is supposed to decrease the demand every year to increase the supply, is that for 2023, all experts, including the IEA, are announcing a higher demand for oil around 102 million barrel per day, which will be a record year. The reality of our world is that the oil demand continue to grows and that we need to face in fact we have the supply.
On the supply side, we don't see a lot of, I would say margin. We see we are entering into this year with very low inventories of products in particular, very low compared to the last 10 years. We have the impact of the sanctions on Russian crude and refined products. The crude oil, Russian crude oil is finding its place in the market, China, India. The refined products of Russia, it's less obvious where the diesel will go, Africa, South America. That's a mystery. By the way, we have also, of course, the supply side is clearly supported by the OPEC discipline, with the cut which happened and the OPEC countries wants to maintain the oil above $80 per barrel will take actions.
The other, we could have expected more supply from the U.S. shale, as it was the case previous COVID, it's no more the case. U.S. shareholders want some returns, today are more speaking about returns than growth. That means that, when you look to this landscape, I think from our perspective, there is more support to, I would say a higher price than $80 than the lower one. We would not be surprised to see $100 per barrel coming back. By the way, the oil market, this is very important to understand, is also today there is no more a world oil market, in fact. That's for a big lesson of what's happening. We are splitting the market between Europe, which there are bans.
There are some cap on the prices. We have today several oil markets which does not help obviously to ease the price. I think we did not have seen all the consequences of the growing gray markets and the supply of this, of oil. On the gas side, this slide is a little complex, just today we can have a better vision, better view, and maybe to even draw some lessons for what could happen in 2023. In Europe, as you obviously, the European gas is driving the LNG and power markets for Europe. You have on this slide what happened in 2022 compared to 2021 first. Production in 2021 and supply demand was around 380 million tons. It grows to 400 million tons by end 2022, so plus 20 million tons.
At the same time, the European demand for LNG has grown by $50 million. You can see on the graph on the right corner, bottom corner, that the demand of gas, and we have all translated in this slide in million ton of LNG. The demand for, in 2021 for gas in Europe was the equivalent of 170 million tons. In fact, 100 million tons was delivered by pipe gas. It is a famous one, the 130 BCM from Russia. We had already imported 67 million ton in 2021. For 2022, the Russian gas has been divided by more than two. We receive the equivalent of 44 million tons of LNG.
We had to add on it one more LNG and there is an increase of up to 115 million tons of LNG. You can see, by the way, that the bar of 2022 is a little lower than the bar of 2021 because there was a decrease of demand, around 15% because of the high prices. To do that, we have done it at the expense of other regions, I would say. In there, as you can see, there was a sort of supply gaps. To attract these 50 million tons to Europe, we had in fact taken out 15 million tons, 16 exactly from China.
China probably have, because there was a slowdown the Chinese economy, which went down from 80 million tons to 65, more or less, but also from other countries like Bangladesh and others. In fact, the supplies of Europe has been possible because we took all the LNG out of other countries, which by the way, have shifted to coal. Yes, the security of supply of Europe has been secured, but at the expense somewhere of the emissions of other countries. Of course, we have done that with a very higher price in order to attract this LNG. What is the perspective for 2023? Might be wrong, but there are some fundamentals.
First fundamental is that we expect Russian gas to be lower in 2023 than in 2022 because in fact, we have been supplied by Russian gas and Nord Stream pipelines up till mid, until middle of the year in 2022, and these pipelines are down today. We expect, I would say half, maybe up to 20 BCM, only mainly by the Ukrainian pipeline. If even if there is a potential, again, destruction of demand, we expect more LNG being required by Europe than in 2023 than 2022. 15-25 million tons are our expectation, depending on demand. The increase of supply in 2023 compared to 2022 is only 10 million tons, 410. This 15-25, which is more than what will be supplied worldwide.
We could expect as well, again, the same question mark, a recovery by China and an acceleration of the economy in China and recovering part of all of the 15 million tons that we acquired last year. We derive, we distract it from China. The supply gap is there again. It's why we think there will be some tension. Of course, on the gas, there is one element which is different, which is a small note on the bottom right corner, which is the storage level. The storage level were at 54% last year by end of January. Today they are 85% in Europe. We cannot store more because there is a limited capacity of storage in Europe. This is why today the price are lower.
We will consume this gas, and so we think that some tensions will appear by middle of the year, between the different markets for LNG. 2023, our activity in front of this environment, will continue to deploy our strategy. We have already announced, of course, on the LNG side, we are adding some regas capacity in Europe. The one in Germany has been opened, is operational. You know, we have put FSRU in Lubmin, which is the point where the Nord Stream is landing, which is a perfect access to the German market. Our LNG traders are quite happy with this infrastructure. We have booked half of the infrastructure for our own business. We are adding another one in France, where we intend also to book half of it.
That's LNG. There we continue, of course, to chase opportunities in LNG. As you know, we have ambition in the U.S., and we'll come back to you later. The second part of deploying our strategy, it's important, refining and chemicals, where we have Bernard and his team have worked hard during years to consolidate these Jubail platforms, the SATORP platforms. You know, our strategy is expanding fundamentally in an integrated way. We have been happy to take the FID of the Amiral project, which is a $11 billion world-class petrochemical integrated complex, which will come on stream in 2027. It will consolidate the profitability of our integrated downstream business.
Last but not least, Integrated Power, which is the other pillar of the growth, will benefit in 2023 from the acquisition of the 70% remaining shares of Total Eren. We have exercised our options. It was, as you know, a transaction where the negotiation took place in 2016 at a time where the multiples were reasonable on renewable assets. That's already there. It gives some work to our teams, but there will more to come. Of course, we'll not just sleep during the year, but we'll continue to find smart act, developments in all our projects. With lowering, of course, our emissions. It's always, you know, our motto is more energy, less emissions. Growing our energies for sure and our delivery for energy, lowering our emissions.
In particular, we have announced in September that we have launched a worldwide energy saving plan in the company. The teams have been super reactive. The $1 billion has been distributed at an average, by the way, cost of $50 per ton. It will begin to be spent in 2023 for $400 million. It's spread over the two years. It will allow us, by the way, to lower our targets on Scope 1 and 2 emissions by two million tons for 2025. We'll come back on that in March. Second point of 2023. I think it's important for all the investors, is our cash allocation priorities. There is a scheme now has been put in place. Remind you that we want to deliver 35%-40% of cash payout through the cycles, 37.2% in 2022.
As we have taken some first decisions with the board of directors on this first dividend that we begin to call ordinary dividend to differentiate it from the special dividend. We want it to be sustainable, and this of course, the increase of 7.25% we have announced yesterday for the 2022 final dividend and the 2023 interim dividends at EUR 74 per share, is supported by both the share buybacks, which we have done last year, which were representing almost 5% of capital. Of course, this 5% is a return to shareholders only if we translate that in an increase of dividends, which we'll do, and we do more. We go up because there is also an increase of the underlying lash cash flow growth.
This is the reason why we've done this increase, which is a larger one than the one we have decided for the full year 2022, 6.5%. I would like to remind to all of you that the difference of some of the peers, we didn't cut the dividend in 2020. We have maybe less room to increase it this year, but we increase the dividend year after year, 2022, 6.5%. The base is for more than 7% in 2023. That's our commitment. The CapEx, I will come back on it. It's we gave you a range of $14 billion-$18 billion in September. It will be $16 billion-$18 billion, will be higher in the high part, of course, $5 billion in low carbon energies.
The balance sheet, difficult to express a target for the gearing. It's down to 7%, so it will be strange to you to say minus I don't know what. We express our ambition in another way, which is to continue to strengthen the balance sheet because it's a guarantee for the future. We've today we are A+, I think. We want to target to better AA credit rating. It's an ambition for. It's the objective of my CFO, no? He told me it's aspirational. I told him, "No, it's a real objective for you and your team." And I think it's true because again, for me that is the best answer to ensure you that all our strategy in CapEx and return to shareholder will be delivered through the cycles.
The surplus cash flows are, of course, allocated part of it first to buybacks. Last year we were on an average of a little less than $2 billion. It was $1.75 billion. We increase it to $2 billion and in the last quarter for this 2023 in an environment of $80, which is lower than the one of last year at $100 per barrel. I think it's a commitment to this buyback and special dividend is only in case of super profits. We will come back on it. Even if, as I will explain you, the shareholders of TotalEnergies will be rewarded with a special dividend in kind as we will organize the spin-off of our Canada upstream assets. I will come back on it.
I think this is a full program which demonstrates the very, the real way we think to the future. When you look to in fact the column 1 and 4 are for the shareholders, column 2 and 3 are for the company, and we think to that. Of course, we have to, we come back to the other stakeholders. The capital investment of 2023 will support the transition, $16 billion-$18 billion, at which out of which $5 billion for low carbon energies, let's say a quarter for integrated power, and more than before on the new molecules because we grow ambition in the various segments. In particular, in carbon capture and storage, we have been awarded new projects in Denmark. No? We have Norway, Denmark, Netherlands.
We built, I would say, our position in this business. Also included in this part is our energy savings. Let me say the negative emissions that we can do. You can see that we have also new projects of course coming into our hydrocarbon businesses, oil and gas. In gas it's growing because it's the Qatari projects. There is no Russian LNG, no more, no expanding, but which was of course there was less investment in 2022, but the Qatari projects are there. We'll have the Cameron projects. We have the PNG projects. PNG targeting FID by the end of the year. Cameron targeting FID by September. There is a lot of work on LNG, of course on oil as well because we have some new projects on which we work.
Like in particular in Brazil, we have Mero- 2 will come on stream. We'll have Atapu- 2 and Sépia- 2 to sanction this year. We have also Uganda. We have new projects coming. You can see that by the way, we have as much new projects on both sides, little less in hydrocarbons than low carbon energies. We have the rest of the CapEx is a maintenance, and we need to invest more or less $7 billion-$8 billion each year to maintain, I would say the world system. The 2023 production will grow. More energy will grow, mainly coming from LNG again.
There is no new project coming on stream. Last year we had some, I just say, not a full utilization of NOVATEK, which came back on stream by middle of the year, and from Actis because there were some big overhaul in Actis. 9% more production of LNG and pipe gas to Europe. Oil will benefit from the full year of Brazil plus 5%. It's good in this environment. Production will grow only by 2% because at the same time we have some perimeter effect on domestic gas. We have exited from Myanmar. We have exited from Termokarstovoye. We will exit from Thailand. Honestly, these are domestic gas. There is no the...
Why did we differentiate them from the rest of the gas is that there is no upside. On this type of gas or limited upside linked to the gas price, international guide price or international oil price. It's in terms of economic impacts, we don't have the volume, but the upside is more limited. What is more important for me are what we do in LNG and pipe gas to Europe, because there you see the upside of this market, plus the oil. Startups in Oman, Block 10 has started. Mero to Brazil middle of the year and Absheron in Azerbaijan for gas. Just to mention that we are quite in our company, we don't speak about decrease of oil or decrease of gas.
We speak about stabilizing, growing, continuing to supply the market, being a key player of the energy supply and taking a role, even if we are not a very large player, but we do a role, which means that we continue to focus also on reserve replacement. You can see that the 2022 reserve replacement ratio on the year are quite good. 108% at the same price, 85% with the price effect. Around 100%. There are not so many major companies which have been able in the last years to maintain their replacement rate at 100%, and we are one of them. Without Russia, which was of course for us a source of reserves, but we can do it without it, as it has been done in 2022. Let's continue.
The integrated LNG portfolio, the ambition, as I just mentioned, more production. It helps if we help our colleagues of the downstream LNG to sell more. Of course, there is a spot uncertainty, our position, as I said before, is strong in regas in Europe. We are increasing our regas capacity in Europe, thanks to the Lubmin and the Le Havre FSRUs. We'll have more than 20 million tons of LNG regas capacity, which is good, which is strong. It will help us to continue to monetize these capacities. As you can see the split on this slide, which is important, we split it into, I would say three pockets according to the margins.
There is a pocket of, I would say, long-term Asia, Latin America portfolio, which is fundamentally giving us results and cash from, i t's the difference between Brent and the cost of production. That's the idea. We have the European and flexible markets where we in fact, we supply the Henry Hub gas, LNG from the US to the spot index. There, the profits will be, I would say, spot minus Henry Hub. Today it's $20 more or less per million BTU minus 3 or a little less than 3. You can see the margin. You have the spot ones where in fact it's some sense of margins, but this activity help us, of course, to, by the way, absorb the cost of the regas and to contribute to security of supply. We have put at the top Yamal because there is always.
Today, Yamal, by the way, be clear, we have only, we have stopped, we have all the volume, the 4 million tons of volume of the long-term contract on which we are committed, but we are strictly only these volumes as all the activity which was linked to spot extra volumes, we don't take them anymore as per our commitment vis-à-vis the Russia business. Integrated Power will continue to grow. Clear, because of course, the gigawatt of capacity, as it was said by Jean-Pierre, we have managed more than the 16 gigawatt by end of 2022 capacity, gross capacity, we are at 16, 17 point, 16.8, 17. By the way, I would like to tell you that there are not so many companies able to grow their renewable business by 7GW in a year.
You can look around. We are among the top. Again, when we do things in TotalEnergies, we are consistent, we do that seriously, and we intend to deliver not only growth but value because it's why. This is a fundamental reason why we have decided to anticipate the split of I GFP into two reporting segments. By the way, there is no split of organization. Stéphane is leading the whole businesses. Just to be clear, it's a reporting. We have done it because I think now it's time not only to speak about volume, but value. The best way to deliver the value is to report the results and to show it that we will improve it. Of course, we have quite a lot of capital unemployed today, but it will come on stream year after year.
We target an increase of production by around 30%, mainly from renewables. We benefit today from a very high utilization rate of the gas-fired power plant in Europe, but there are also some capture of special taxes in Europe on this gas-fired power plant. Having said that, we expect an increase of our integrated power cash flow from $1 billion to, let's say, +30%-40%, we'll see. These capacities will move and we will have to deliver this growth. The year 2023, coming back on oil, and I think it's important to tell you that we have decided to mobilize most, at least, almost 50% of our exploration budget on Namibia.
We have maybe today, in TotalEnergies, and I hope it's true, and I don't have wood, but only plastic here. It's really maybe at the helm of... It's clearly according to, by the way, for Wood Mackenzie, the largest discovery which has been done in 2022. We are maybe at the helm of a new golden block. We decided to mobilize two rigs and $300 million in TotalEnergies share to, I would say, tell the tale, return the cards with one, two, three rigs, wells, plus tests, and to have dynamic tests to really know what we have in our hand.
With the idea that we, to accelerate the time to market, not to appraise everything and to be, an ex- I would say, to know everything, but if we have the chance to really confirm the volumes, which seems to have been discovered, there will be room to make fast-track developments like we've done on Block 17 25 years ago. So this is from my perspective, very important because this could be a new chapter of the old business in the company. So we mobilize the teams and all E&P teams under the supervision of Nicolas and also the OneTech teams are on these important projects. At the same time, we will divest some oil. The expensive oil we know we have clearly set two years ago.
We made some improvements, but we, not only Canadian assets are not in line with our climate, but strategy, but fundamentally, they are high OpEx assets, and we are not fitting with our oil strategy and our oil portfolio. We look to various options, and we confirm today that we consider that the best way is to maximize value for shareholders is to introduce this independent Canadian company in the market. The idea is to do it. The objective of the project is to list it on the Toronto Stock Exchange in the second half of the year. By the way, you can see the metrics of this independent company of 2022.
It was a company which produced 110,000 barrel per day, which delivered more than $1.5 billion of cash flow from operations and almost $1.3 billion of free cash flow. It's quite interesting metrics. We have appointed a leadership team from a Canadian lady, she's working in the company, will become CEO of this company and chairmanship as well by an ex executive of the company who knows very well Canada. The idea after that is that in order to manage, I would say the backflow in this type of listing operation, we'll maintain more or less 30%, not more.
It will be for some years in order to stabilize the company, but fundamentally, the idea is will not be a company controlled by the TotalEnergies, not at all. We think we'll have take maybe one director out of it, but it has to be. It will be managed as an independent company. By the way, this is the reason why we just preempted for this company, not for TotalEnergies, I would say, for SpinCo, 6% of Fort Hills. There was a transactions between Suncor and Teck, and we considered that if we were in charge of this independent company, obviously because these were attractive conditions, we would have to preempt. We've done it in order to strengthen the company for before its listing.
For shareholders of TotalEnergies, they will have to approve this spin-off at the AGM of 2023 in May, and they would receive a distribution in kind, so special dividend in kind, of this new SpinCo company. We will report to you, of course, along the coming months on the progress of this project. Coming back to the 2023 objective, which is important, is cash flow generation. I'm happy to tell you with the support of the growth in integrated LNG, in integrated power, but also on the oil production, the underlying cash flow growth will grow by another $1 billion. I know we have announced $1 billion per year. It is the case. This $1 billion is feeding the growth of the dividend.
You can see that we gave you there on this chart, I would say an indication of what could be the cash flow from operations expected at $80 or $100 per barrel. We are navigating between both, and you can compare to 2022, at $100 per barrel in the same condition, we expect $1 billion more. If $80 per barrel, you have the sensitivity on the right. It's $3 billion extra cash for $10 per Brent. It's a little lower than last year at $3.2 billion because of the impact of the U.K. taxation and also because we have deconsolidated,
I would say, NOVATEK, which partner Yamal condensate. Because Yamal is linked to Brent, more or less. W e keep all shares in Yamal, but we have deconsolidated of our accounts all the share of NOVATEK in Yamal. that's why the sensitivity is a little lower. The $0.4 billion for $2 per million BTU is also lower than last year because of the U.K. taxation, fundamentally. for the margin sensitivity on the refining margin, I would say it didn't change.
Just to show, to remind you that, and I would like to insist is that, there is obviously for the TotalEnergies sales, quite a good potential for stock rating. free cash flow yield in 2022 was at 19.4%, and we have enterprise value per by the CF ratio of only less than four, multiple less than four.
This we're expecting, we hope that these strong results will be translated in the value of the company. Finally, I would like to tell you that, of course, the company I've shown you before that we are allocating our cash flows to the company by cap investments and debt reduction in a large way, but also to the shareholders by way of the ordinary dividend, special dividend, buybacks. We are also thinking to other stakeholder. There is one stakeholder missing on this slide, which are the states. The states are benefiting a lot of the oil and gas profits, you know, and people are complaining some time to times.
For TotalEnergies, we have doubled, more than doubled, taxes and that we will deliver, we'll have paid to states around, among, around the world. $16 billion in 2022, $33 billion in 2023. Of course, they are mainly paid to producing countries, but a country like the UK, it's $3.7 billion, Norway $7 billion. Not to the consuming countries, that's clear. This is a strong contribution, I think, to, this is, to, I would say, the public good through the taxes we deliver. We are also thinking to our customers and to our employees. Our employees are of course very, at the engine of all these results.
We should never forget that it's not only the strategy, our 100,000 worldwide employees which are delivering the strategy. We have rewarded them with special one-month salary bonus. We are taking into account the inflation in each country to increase the salary. We share the value of our salaries, which are also, by the way, shareholders, and which 7% of the capital is a property of our employees. They are also receiving their part of the dividend. For the customers, we have been probably followed a different route than some of peers.
We have decided to make proactively some sharing profit with our customers, in order to, I would say, take part of the pain of these high prices, high energy prices. You know, the 2022 was in many of our countries, a debate of energy, which was dominated by security of supply, but of course, affordability. We have put in place some fuel rebates program, a massive one, more than EUR 500 million for benefit of customers in France.
We had to face some also other energy crisis like the SMEs customers or SME customers suffering of very high electricity prices, which were contracts because of the increase of electricity price to the sky in Europe, second half of 2022. We take actions, and we continue to take actions because we consider that it's part of our social responsibility to take care of all our stakeholders, of course, the shareholders, the company, the employees, the states, and also our customers. I will stop there and thank you for the attention. We'll be happy to answer to your question.
Anyone who wishes to ask a question may press star and one on their telephone. Please pick up the receiver when asking questions. Anyone with a question may press star and one at this time. The first question is from Oswald Clint of Bernstein. Please go ahead.
Good morning. Thank you very much. Could I ask please, Patrick, just on the dividend again. I mean, 7.25% increase, you said you couldn't do more. That's understandable. It's helped by the buyback. We understand that too. In the context of the last, the long term, where you've done, let's say 5% or 6% growth the last 1, 2, 3 decades, if we can sustain the dividend and the commodity view cooperates, as you seem to indicate, could, you know, 6%-7% or 7%-8% become a new trend line, at least for that ordinary dividend, is the first question. And then thinking about future profits and Namibia, interesting slide you have. Do you think we'll get some proper resource numbers in 2023?
When you talk about fast-tracking, if successful, what does that mean in terms of time? A linked question, obviously Shell's Jonker well has come in, which might give you confidence on a easterly extension of Venus, but does also pose some unitization risks further down the line that actually could delay things. Thank you.
Okay. On the dividend, we didn't tell you we couldn't do more. We have decided to do it at 7.5%, which is, yes, you are right, a change of the past trends. I think again, for me, it's also the translation of the fact that we have increased the buyback. As we have bought back, almost 5%, it gives some comfort. I think, when people speak about return to shareholder for buybacks, if we don't translate it in a higher increase of dividend, I don't understand why it's a return to shareholder. It's a saving for the company of dividend, for sure. That's logic. I think, I've been very logic with what we declared, and the board is logic.
We have. As long as we can allocate some cash to these buybacks because we have more cash flows and we are, again, we continue, we did not decrease the buyback rate. We maintain it despite the lower environment. I've seen some of our peers have decreased their buyback program for the first quarter. We don't do that. We maintain it, and that's proof. The answer is to you, maintaining this buyback program, yes, will help us to support a new normal, which might be 7%-8% and will in the future. That's in the future years. Again, there are two engines to fit the increase of the dividend on one side is buybacks, on the other side, it is the underlying cash flow growth.
I am announcing it again that we target $1 billion. By the way, I understand that the board, among the new criteria for the variable pay of the CEO, as to he decided to introduce the underlying cash flow growth, you know. It's, we walk the talk in the company. That's, that's what I can answer to you. Again, don't forget, unlike, you can compare it to companies who have increased by 10, but these companies have divided by two or more in 2020, which could give more room to maneuver to increase. We didn't decrease at all. We are also starting from a much higher point from this perspective. You spoke about Namibia, let's keep. Namibia, we have a program.
I just tell you, we have one well. People are super excited. They speak to me about billions of barrels, but we don't have the data. We have no dynamic data. We all know that, as long as we don't have a test, a dynamic test, maybe, if there is no good permeability, it could be complex. We are excited. It's clear as we mobilize, and we have decided to mobilize a lot of our exploration resource this year to Namibia because we want to know what we have, and if it's true that we have this type of size of resource. Obviously, there will be a lot of room to develop. Honestly, unitization, we will not did this. We speak about billions. We can make a first project on our side without making complex stories.
Having said that, I can tell you on this project specifically, there is a very good cooperation between the Shell and TotalEnergies teams. We share the data as we have an agreement, so we will discuss together. We'll a bit. The idea, if it's really big, is not to be a super optimization to appraise all the discoveries or there is another idea. Like we've done in Angola, let's see if there is a first development. We'll have time to optimize. I also remind you that there is the same partner on both sides of the license, which is GATOR Energy. We are happy to do it. Let's see. It's premature to speak of a size of resource.
What I hope is that, when we have drilled all this program, which has been organized in order to have, three wells and three tests, in fact, with two rigs, then we'll have a better clarity and we can speak to you about resources. Today it's premature. Let's do the job and we'll come back to you. I can tell you that, as a CEO of the company, we are quite excited like we were when I entered the company. You know, I was lucky. I was assigned in Angola on the Block 17, so I hope we'll have the same in the, in our hand, for the next 35 years. Okay. Next question.
The next question is from Christyan Malek of J.P. Morgan. Please go ahead.
Good morning, it's Christyan Malek from J.P. Morgan. Two questions, Patrick. First, I know that we've shared a fairly similar view on the sort of super cycle prospect in oil over the coming years, and you've positioned for that in the context of your portfolio. Can you walk us through where you see your growth prospects from a three to five-year view? I mean, coming back when you had the best-in-class growth rate for oil, upwards of 5%, 6%. Do you envisage a situation where you could lean into that growth and sanction projects? I know you're moving to short cycles, one of the bases of your increase in CapEx.
If you can provide us with what would be the upside risk on your volume growth if you were to choose to sanction more projects and take a longer-term view around investing in FIDs, a term that I think has become quite rare in this industry. The second question linked to that and linked to your Canada IPO, do you think this is a template going forward if the market's not going to recognize the value associated with oil, you know, whether it's because of ESG, because of net zero? Could this be a rollout of other projects or other regions going forward, where ultimately you IPO your oil business in a way that, you know, generates better value for shareholders? Thank you.
I can tell you just we, if we can sanction projects, we'll do it. We have in 2023, thre big projects to sanction in the company, oil projects. We have the Block 20 and 21 in Angola, Cameia- Golfinho. We have the Ophir, and we are working on it very hard in order to manage the cost of the projects. That's a key issue, but we'll do it. We have in Brazil, because of the acquisition we've done, we have two projects to sanction. One is at Atapu, the other one is Sépia-2 . This will feed the growth. We are looking to other opportunities to grow our portfolio with always the same motto.
It has to be resilient through the cycles, so less than $20 per barrel or $30 of cost, technical cost, or $30 breakeven, and less than 19kg per barrel of emissions now as we lowered it because it's the average of the portfolio. Again, we consistent, and there are opportunities, and I hope we'll be able to announce you smart opportunities in the coming weeks, in the next weeks. Again, by the way, we have also in our portfolio Suriname and Namibia. I just described Namibia. Suriname, as you know, is a little more complex, but there was a good news by the end of the year because the Sapakara South appraisal is positive. We have at least the first pool, oil pool of a potential project.
Half of it is confirmed. We are drilling wells on the Uncertain and around discoveries. Now two wells, I think. We have accelerated as well. I hope that by middle of the year, we'll be able to confirm that we have the oil pool that we are looking for in Suriname. There is also the short cycle projects. I think, this is what has been done in 2022 to accelerate the mobilization of rigs. Angola, in particular, is delivering a lot, Nigeria, Congo. These are the because there we have already some infrastructures, FPSOs, so we can build adding wells on the infrastructure. That's the way we look at it.
The answer is a super cycle, but what we will not do is investing in expensive oil just because today on the short term, the price is good. Okay? This is the second question on Canada. It's why we think, by the way, that it's the right time. I don't know if the market will fully recognize the value, but I'm sure that it's probably the best time so that it could recognize it, you know. With the figures that we just announced. Now we have been, people know that we want to divest these assets. They are not fitting with the strategy. We make money this year, but this could disappear, so we have the ambition to get a good value out of it. The various, acquisition offer we received were not in line with expectations.
Well, I will say, but we are optimistic about the capacity of the market to, which is, for us, the best way to monetize these assets. Is it a model to roll out over E&P assets? No. No, it's a specific model because again, these assets are high costs. They are not fitting our strategy. No, we are not the best shareholder. The reality, there is a potential to grow in these assets. Surmont is a very high-quality asset. Fort Hills suffered but could deliver more.
We are not the best ones because we don't want to put CapEx. Why should we keep in our portfolio, assets on which we are not the best shareholder? The other assets which we have in our portfolio, we are very happy shareholders. In particular, I'm quite happy to have directly access to the cash of all the North Sea assets in TotalEnergies today.
Thank you.
The next question is from Irene Himona of Société Générale. Please go ahead.
Thank you. Good afternoon, Patrick. Congratulations on these results. My first question is on the balance sheet. You obviously enjoy an exceptional balance sheet already with only 7% gearing, and you seem to want to strengthen it further with reference to reaching double A credit rating. I wonder, what is the real significance of an double A credit rating, please? My second question on LNG sales up very strongly last year, 22% in Q4. You're still selling Yamal cargos, obviously. Can you let us know, please, how are you getting paid exactly in the middle of these sanctions? Thank you.
Okay. Balance sheet. Why is it important? I think just, you know, I'm trying to fill the gaps with the valuation of some of our peers. We are quite systematic. We look to the difference. There is one gap, which is that our U.S. peers are rated AA. We are not yet rated AA. When I look and when I compare the metrics and the results of TotalEnergies with at least one of both, I see very similar metrics. Maybe there is something missing. I think again, I think it's also a message because for me, that means that a, AA would means that you, our shareholders and new investors could really believe in the future and the guarantee of the future return to shareholders. I think it's a strong signal.
Again, it's a way with the board we discussed. Can we express again, a new objective of gearing? It seems to be difficult. Y -5? Y -10? Keeping the -15 would be odd to you today. We think that there is room to go to another step and, you know, again, giving some challenge to Jean-Pierre. No, I think it's again, I think it's the, it would be a translation of the very strong strengths of the company. Let's work. We'll see if we can convince. energy Yamal. First, Yamal, which is the only asset remaining, is a source of two cash flows. There is the direct interest in Yamal as an asset, 20%, and this company sell its LNG to different buyers, one of them being TotalEnergies, on brand basis.
It is true that we have received some dividends from Yamal in 2022, some it's a little, it's becoming more complex. We have, by the way, decided to book the cash flow from Yamal only when we receive really the dividend. This is one of the explanation because I've seen a question mark coming, why this very seems there is a gap on the I GFP cash flow. There is no on the LNG cash flow. It's because we don't book the full result. We have decided to be prudent. We book in our accounts cash flow from Yamal when we see the dividend in Paris or somewhere in our-
Pockets.
In our pockets. We are prudent, you know, because again, there is a strengthening of sanctions. That's the first part of the Yamal cash. There is another part, which is this long-term LNG contract, which the teams of Stéphane are handling. They pay, they acquire this LNG on a Brent basis, and they sell it at the TTF price when it comes to Europe or the JKM, if it goes through AZ. That's also a quite a large source of cash. By the way, it's even better, maybe a better, We don't hedge any more of this contract. Because why we took this decision? Because we are not sure that sanctions on one side or the other side, by the way, could not derail this volume.
That means that, in fact, most of our LNG volumes are hedged one year in advance, but Yamal. Yamal will really, these four million tons will reflect in our accounts the reality of the TTF spot market or the JKM spot market compared to the Brent in the year 2023. In fact, Stéphane, most of his business is already done. He has hedged a lot, then he can optimize around the hedging, but he has this amount of these contracts which could deliver. This is not Russian money. This is a European contract. This long-term contract and the cash we derive from the Yamal is today in Europe, there is no constraint and is reported in our account like the other long-term contract that we managed in our portfolio. I hope it's clear where we are today.
Thank you very much.
The next question is from Christopher Kuplent of Bank of America. Please go ahead.
Thank you very much, good afternoon, gentlemen. Two quick ones, please, if I may, Patrick, Jean-Pierre. If you are looking at your CapEx outlook, can you maybe give us a little more granularity in terms of your assumptions embedded in that 16-18 number for 2023? Particularly looking for your assumptions regarding underlying inflation. Jean-Pierre, you said there wasn't really any to report in 2022. Just wondering what you're assuming for 2023, and if you can, maybe give us a hint as you usually do, about how much of that you think will be inorganic. Then lastly, on your point, Patrick, regarding the iPower, the, the new disclosure.
Maybe you could give us if you had a view on, as you rightly said, a lot of unemployed capital that we will see growing in the next few years. Maybe you could tell us where you see capital employed going for that Integrated Power Business because you've got access to that pipeline you've worked hard to achieve. I think that would be probably a more important figure than your earnings progression into 2023 here. Thank you.
CapEx inflation embedded for inflation, honestly, on the short term is quite low. I think maybe it's a 2%-5% which has been mentioned by. On the short term, there is no real impact on CapEx. The CapEx, the inflation for us, the headache for Nicolas and Namita, are more about the new projects because of course the contractors wants to embed higher costs in the new projects than we don't want. This is fundamentally the debate. For the execution of the projects which are. Most of the CapEx of the year, you know, are more the old projects which are already sanctioned than the new ones. The new ones generally are impacted quite, will impact the next years. There is no real inflation I would say.
The rig could be one of them, but as Jean-Pierre explained, for 2023 we are covered by good rates. For me the debate about inflation with contractors is more for these new projects we want to sanction that I mentioned to you. That's a point on which we need to be all serious, otherwise we'll wait because we'll not repeat the mistake we've done in 2010, 2014, which is to sanction whatever the cost is. I will not do that. M&A, I think there is a net assumptions of inorganic which is around $1 billion-$2 billion. That okay, it's a matter of buying and selling. We have some different options in the portfolio to buy and sell. We'll keep you aware.
This is, I would say, and it's part why we keep the range because of course when we don't, the range is for me, sometimes you know you have divestments which are done, but you, for example, Dunga we work during one year but we will receive the proceeds only in 2023, not in 2022. You might have some time of execution which in these type of divestments. That's the idea. Most of the CapEx we gave you are organic, in fact, to be clear. Most of it. On iPower, it's a new reporting, we have a full reporting by, you have to be a little patient, because Jean-Pierre and his teams are working. From first quarter of 2023 in April, or end of March.
In April, sorry, end of April, we'll deliver to you not only the quarterly results, but the previous years. We will restate the three previous years, so you will have some indication. It's a business where most of the CMO, we have some capital employed of course and productive because. The cycle is quicker than in oil and gas, because normally to build an onshore solar plant or an onshore wind farm is more two years than five, four years. Four years I would say. Normally, the cycle is quicker. Having said that, we also have offshore wind and offshore wind is more like an exploration cycle than an E&P cycle than on a short cycle. I mean a non-shore renewable cycle.
We have also in our as we make some acquisition we have also some unamortized, I would say value, you know. I don't have the precise figures, I don't want to introduce something wrong, but I have the idea that the capital employed of this iPower is around today $15 billion. I will confirm that to you. This is what I have seen in some first figures. I think you have maybe probably a third of it which might be unproductive, just round figures, okay. We'll I think the exercise to oblige ourselves to make this new reporting is very important. I know that there are question marks about the profitability of this business, we have to deliver to you.
When you report, you focus on it and you will improve. That's a lesson learned that I learned from refining and chemicals. I said to Stefan, you go to Bernard, you ask him, have we improved the refining and chemicals profitability from 5 to 20% today or 15%? I think focusing is important and is the answer. We intend, clearly, to be consistent with this strategy. Integrated Power, all the words are important. It's not only renewables, again. It's really the capacity to deliver value from a volatile market and from price which will go upwards because we need more and more electricity. That's my answers.
Thank you very much. Look forward to it.
The next question is from Lydia Rainforth of Barclays. Please go ahead.
Thank you. Good morning. Two questions, if I could. Patrick, thank you for the very comprehensive update around what you're seeing on the commodity markets at the moment. Given everything you said, in the kind of cash payout ratio, do you expect that you'll be in a position or Total will be in a position to pay a special dividend, this year or later on in the year? Secondly, if I could come back to Adani and it's only relatively small amount of capital employed there, but does it change anything in terms of how you think about your approach to renewables in certain countries or JVs within that and the growth prospects? Thank you.
First there will be a special dividend, which is a special dividend in kind with the spin-off of Canada. It's not zero. It's when I see the figures, it might represent not far from $1 per share. Don't underestimate that value. It will come for shareholders. Again, the special dividend, we are very clear. We told you priority to buyback if we have, again, an environment like we had last year, we might consider that. That's my answer to you. It's premature. For by the way, it's premature because today what they observed since the beginning of the year is $80 per barrel. I don't see less than $20 per million BTU. There is no reason. At this type of environment, we'll not have a special dividend.
We'll prefer the buybacks. This is why we maintain the $2 billion. We don't decrease it. If we come back to an environment like last year, we might consider that. Again, there will be a special dividend for the in-kind for the Canada spin-off. Adani, no, it does not change. I think, again, first on Adani, I see a lot of papers and I thank some of you for having trying to calm down the markets. We have an exposure which is quite limited of $3 billion, $3.1 billion. Obviously, the hydrogen project which was discussed will be put on hold as long as we don't have a clarity on all that part. I'm confident in the fact that Adani and Gautam Adani is taking care of his business in a smart way.
As TotalEnergies, of course, we have to form a prudence to understand. We are there. By the way, all the companies of Adani in which we invest, we looked yesterday to Adani Green, for example, is a very safe company. You know, they generate $1 billion per year of revenues. They have a debt of $5 billion. It's sustainable. It's a sustainable model. Maybe this will could impair the growth. Good, I'm not sure. Again, at the end, the equation is more a strategic one. Do we need to do it by our own or not? Honestly, doing by our own renewable business in India or even in Brazil, I think it's too complex. I think I prefer than the... Again, I think finding the right partners is the right way.
We have been pleased by the way that Adani has delivered. Adani Green Energy Limited or Adani Total Gas Limited, the companies which are managed by independent CEOs, smart CEOs. We are happy with them, and we are happy also with the partnership with Adani. Of course, then it's to go Adani to explain what is the way they finance all that.
Again, for me, fundamentally, no, it does not change the approach we have. It's true that, we knew that, electricity is not really again, a renewable. Electricity business is more local, so you take more local risk. Maybe it's also local opportunities, you know. I don't want to be too, don't look to the glass half empty, half full is better. Again, we'll work on this one.
Wonderful. Thank you.
The next question is from Michele Della Vigna of Goldman Sachs. Please go ahead.
Thank you very much for your insights today. I had two questions, if I may. The first one is on your low carbon strategy, and I was wondering how much the IRA has changed your capital allocation. It feels like the renewable molecules businesses like bioenergy, carbon capture, hydrogen, are becoming increasingly attractive, while renewable electrons are perhaps lagging a little bit behind, especially in a higher interest rate environment. I wonder if that is reflected in your green CapEx allocation as well into the coming years.
Second question, I wanted to come back for a moment on the comments you made about your exposure to spot LNG. It's very clear your exposure to spot gas in Europe, TTF and NBP: $200 million for $1 per MCF. I was wondering if you could give us a sensitivity to spot LNG as well, also including what you've actually hedged over the next 12 months. Thank you.
Okay. The IRA is good for everybody, yeah. Not only for molecules, but also for renewables. Don't maybe you don't follow that given carefully, but there is some advantage linked to the IRA that we benefit for more. In particular, there was a production tax credit which was mainly in favor of wind, which became through the IRA technology neutral, and which the solar will benefit. Solar projects are now eligible to this type of tax credit. It's also another advantage. In fact, the IRA is an extensive law in order to support all green infrastructures, including renewable projects, including, by the way, storage projects. Storage as well is supported, you know, and when we speak about, for us it's very important because we feel renewables, we want to be integrated.
Capacity to build some battery storage capacities is important, energy storage capacity. The IRA is also supportive of that. It's reinforced. In fact, the IRA has given even more value to the Clearway acquisition we have done this year. It's a happy new for me because we didn't integrate obviously, this type of support to the full portfolio of Clearway, and we benefit from it. It's a, it's an upside which will really materialize because we have a very large portfolio.
Having said that, coming back to the molecule business, of course, when you speak about hydrogen today, you know, I was asked by the French Minister of Economy, in Abu Dhabi, "Do you want to invest in hydrogen?" I answered to him, "Yes, in the U.S." You know, he was not so happy with my questions, my answer. You know, that's the reality. I mean, you have $3 per kilogram. Having said that, the question is not to make projects, is you have no demand. The rush to infrastructure is good, but we need to find the demand. I would like to be sure that the demand will follow beyond what is obvious. I think, because you have two types of demand for hydrogen, green hydrogen or blue hydrogen, whatever it is.
It is the hard-to-abate industries, the refining industry, the local industry, where we need to make local projects because we have local customers, where there is a market for decarbonization. This one I understand, and we'll look to that. We are investing and we have less assets in the U.S., but we could. We are looking with Bernard to see if we could benefit from it for decarbonizing Port Arthur, for example. It's obvious. Then you have the export markets, the massive markets, which does not exist for the time being. I would like to see where it is before to speak about it. Having said that, we begin to see or we could leverage the IRA.
For example, we are looking to if does it make sense to make e-methane projects in the U.S. in order to export synthetic methane in the future for liquefaction plants. That could be a nice answer to have these long-term investments, the U.S. might be the place to make some e-methane. That type of things that we are working. We are working at CCS. There's another point. Makes sense to look if there are some projects. I think the direct air capture projects today obviously the place to try to test this technology is the U.S., thanks to this IRA. It's part of the technology investments we need to do to coping with our ambition net zero.
What I hope, by the way, is that Europe, instead of complaining, should do the same. That's all. We need to have, if we are serious about the global net zero ambition of the world, to make this type of support to invest green infrastructure all over the world. That's the answer to do. I think, I take it as a comfort to not only our, I would say, electricity strategy, but also of course, to develop the new molecules. You've seen in our budget it's coming upwards. I didn't mention, of course, the sustainable aviation fuel, which is the obvious market that everybody's rushing to. To the point there will be too many projects, but because there is not an infinite demand.
The question honestly is, not only demand, is demand not only in volume, but also an affordable demand, accepting to pay more. Regulations will be necessary for that. Exposure to spot LNG. You, we gave you some sensitivity on our. It's more the upstream asset. I'm not sure you have the LNG sensitivity in the figure we gave. Do we have it?
Yes.
Okay. Jean-Pierre will answer to you.
The figures we gave for the sensitivity is global sensitivity, so on an oil portfolio, but the impact on the LNG portfolio as well, the portion that is linked to oil, and the same for NBP, so the gas buy plus the portion of the LNG sold on an index gas.
In another way, what we hedged, let's keep. You take the 48 billion tons, you deduct Yamal, four million tons. You deduct the 13 million ton spot, so it makes 30 million tons. If I'm not wrong, I see Stefan, we have hedged more or less this 30 million ton of LNG, which we have the long-term supply, either from the assets or from the long-term supply agreement, the contract in the U.S. The rest is not hedged. This is why I made the comment on Yamal. Is sensitive to TTF minus Brent.
The next question is from Bertrand Hodee of Kepler Cheuvreux. Please go ahead.
Yes, thank you for taking my question. Two question, if I may. First is, coming back on the cash distribution to shareholders. I understand the 35%-40% through cycle commitment is very clear. When thinking about 2023, given your balance sheet and if oil price there, where they are $80+ strong refining margin, where do we, could we frame the board to go above 40% cash distribution to shareholders?
My second question is a follow-up on LNG. You indicated that you generally hedge over a one-year period. Last year, my belief was that you had probably hedged at lower prices than the forward curve. Giving the recent fall in natural gas spot prices and LNG prices and the forward curve, how should we think of your hedging position over the next 12 months? Thank you.
First one, the board, I'm chairman of the board, so I have to convince myself. So just to absolutely the board, I'm the chairman of the board. So I'm fully consistent with myself, I would say. Of course, we, there is, we. No, I think honestly, don't be again, I mean, we are very consistent through the cycle. We did not reduce this dividend at a time where there are many reasons to do it in 2020. More reasons to do it than to maintain it. We do it because we want to demonstrate our consistency and that we are fundamentally resilient. If you compare the increase of 7%-8% that we propose to the, to people who have kept the dividend, you say it's less.
Yes, it's less. Okay, that's a game that I will not play. I prefer to be consistent through the cycle. Again, I think it's an increase, so show it, you should to look to that. As it was asked to me by, I think, it was Oswald, the first question, if I remember. Long time, we were more at under 5%. We go in years, so we recognize it. Again, for me, it's very important that it has to be supported through cycles. We don't want to come to back sustainable. The balance sheet, you're right, gave us more to support it. It's why we go up. Again, I think we have also the buybacks to continue to feed these superior, these higher in the future.
Let's see what it's difficult to anticipate what will happen fully in 2023. We have already good news to you and to your shareholders. You've seen that last year, we did not hesitate to give a special dividend. We'll see what will be the price in 2023. LNG was edged in 20 22 with total price. I hope not. Otherwise, I will be super unhappy with Stéphane and his teams because the price in 2022 were incredibly high. Normally, 2023 will benefit from this edging, or I don't understand. By the way, today we are lower, the present TTF level is lower than the average of last year. I should have more returns from 2023 from this edging in 2022. I mean, I don't fully understand your question.
We'll continue. We have a policy which is not to edge everything, but we want to edge. Why don't we edge everything? Because we experience in 2022, the Freeport interruption on which we had to tack. Because edging is fine unless you have a physical issue, you know? We don't edge all the volumes. In fact, in 2022, we're quite lucky because we managed to, the Freeport production was interrupted, but we had some no edge on other volumes, so we managed to get it. But it's, so we edge a certain I think it's 90%, 80%-90%, and when we keep the rest open.
Honestly, 2022, with this price is still good, and as I described the anticipation we have on the, on the LNG market, it's a little slow, low today. No low. I mean, I know. I speak like Christopher, like Jean-Pierre. It's, no, it's not low at all. It's $20 per barrel. The $20 per million BTU is quite good. In fact, it's, we would have told that, two years or three years ago, I would tell you, we'd have signed immediately, we don't even dream it. I think it's a policy, that we need to manage these positions.
We have long-term contracts, we have exposures, to spot markets, you know, and we want to manage this exposure, not to keep it fully on our balance sheet because then you have mark-to-market stories and all that. We are fine with the policy, and we will continue to implement it. 2023 will benefit from the hedging of 2022, and 2024 might also benefit from the hedging of 2023.
Perfect.
The next question is from Amy Wong of Credit Suisse. Please go ahead.
Hi there. Good afternoon, and thanks for taking my question. I had a question about your emissions targets. Recall in September 2022, you guys increased low carbon CapEx, and then you teased us with the potential to introduce a Scope 3 worldwide emission reduction target by 2025, and also a revision of the Scope 1, 2 net emission target. Patrick, in your prepared remarks, you did mention a few numbers and
Could I push you just to talk a bit more about what those emission targets can look like in 2025? More importantly, I'd love to hear how you think about, you know, returns on, you know, that specific CapEx where it's going towards reducing emissions. Thank you.
What do targets look like? What's your second question? I did not catch the second question well.
I'd love to think about when, you know, your emphasis on your CapEx is always on value over volume and, you know, very high hurdle rates for your capital investment. For something like low carbon CapEx that goes specifically to reducing CO2, I'd love to hear about how you think about the returns there.
The emission targets first, when we speak about for 2025, to be clear, the previous target was 40 million tons of Scope 1 and 2. I just mentioned that the plan of energy savings that we have put in place should deliver two million tons lower. That means that the target will be reduced from 40 to 38 million tons. I mean, I'm anticipating on the board decision, but I think there is a logic there by 2025. We'll improve the target by 2025 by two million tons. We are reviewing not only this one, we are reviewing, like always every year, what is the status on the various intensity in order to monitor that properly.
I don't want to anticipate the decision will be taken, Mark, but this is on Scope 1 and 2. I'm quite clear on this criteria. Look at, but let me clear, but these emission targets that we have today, lowering our emissions today is not a matter of carbon capture by 2025, right? It's a matter of a lot of projects which are just being more efficient. There's some technology to implement on methane, on everything. We could describe to you at a point the type of projects. Maybe it will be a good idea by in September, we'll have the strategic day to come back on this topic if most of you are interested in it.
Carbon capture are more for 2030 plus targets where we will need to have implemented. Return criteria for carbon capture, you know, it's just a matter of scope price of CO2. That's why I think, in the U.S., you have the IRA. In Europe, you have a $100 per ton price. When you compare both, at the end, it's more or less, it gives a never economy. From this perspective, as Europe seems to be very serious about CO2 pricing, I think, on the long term, it's something which is, maybe more sustainable than a board, but, a fiscal incentive, which could, which is sustainable for 10 years, could disappear afterwards.
The key on CCS will be, of course, the size of the market we need, because there is some infrastructures to amortize. My view is that you need to reach at least 10 million tons, 15 million tons per year of storage if you want to have a profitable model. That means proposing transport and storage services to cement industry of less than $50 per ton. Because their capture cost, they could go around $50 per ton. If you speak about $1 per ton, you need to split it between both. It works again, if the support for infrastructure is key, if you have enough tons to put into the projects. From this perspective, you know, the Denmark project is well located, not far from Germany.
It's shorter to make a pipeline from German industries to Denmark than from Germans to Norway. Just looking to a map. That might be a better volumes. Norway. The Dutch project is good because you have the Rotterdam and Antwerp, large industrial platforms, which could give some customers to these Dutch projects, Aramis and that we are working on. That's the idea. Return criteria, again, it's. We have to do it because it's. By the way, for me, for the oil and gas industry, you know, it's a question of permit to operate, all right. We have to be serious about lowering our Scope 1 and 2 emissions.
You know that I'm not very a big fan of the Scope 3 debate. The Scope 1 and 2, I'm very serious because it is a duty for us to do it. We have technologies, we have capacity. It's a cost. It might become an opportunity if we can commercialize the technology to third parties. This is our one B2B entity is trying to develop that. We have a first project with Alsym Energy in Belgium on these type of things. Again, for me, we will develop first this project because we have to do it for our own emissions. It's a question of permit to operate and of the oil and gas industry, and this is embedded in the global strategy of the company.
As I show you, we can be very profitable like we are among the best, and at the same time having CapEx for low carbon energies, carbon capture, as we do it in a certain large way. It's possible. It's building the future of the company. The $5 billion that we have mentioned for 2023, I think is a level which will be maintained for the following three years. We don't intend to grow it very much higher. I think it's a good level. If we want now to combine growth and profitability, and we want to do it, so it's not if, we want to do it. I think it's a good level, and it obliges us to be selective, but selective in a large way.
We have room for deploying this. Why I say that? Because just because we are now in 2022, we have managed our 6GW per year with this type of amounts. For me, I have enough CapEx to make my 6GW per year, which is more or less the objective which are assigned to the teams of Stéphane. I should not see, yes, the only point is coming back to Michele Della Vigna question is what is the size of the ambition? Is it new molecules? For me, the question on hydrogen and all that is more about where is the market, which will drive or expansion of CapEx.
Thanks. That's very thorough. Thank you.
The next question is from Jason Gabelman of TD Cowen. Please go ahead.
Yeah. Hey, this is Jason Gabelman from TD Cowen. I have a couple questions. The first is, you press released last week that you had farmed down a position in the renewable power asset at a high multiple, but it was a low overall cash contribution. One that I wouldn't have guessed reached the materiality of press releasing was a few hundred million dollars. I'm wondering why you decided to press release this given the thought was you had been farming down these assets all along. If that potentially indicates that, given the market environment, you're possibly accelerating the farm downs of the developed renewable power business over the next year, and what type of cash flow contribution that could bring. My second question is on the LNG portfolio.
You're obviously undergoing the review in Mozambique. There's also been some reporting that you could take a large stake, either offtake or equity in a U.S. LNG project. I'm wondering if your pace of growth in the U.S. LNG market is at all dependent on what happens in Mozambique. If you still continue to view the U.S. LNG market as one in which you wanna grow. Thanks.
Jason, you are complex question, but easy to answer. First, no, there is no acceleration at all. We have been always very clear that to reach the double-digit profitability we want to have in renewables, we'll have to integrate farm-downs. It's part of the business model. This why we have some gross capacity objectives, that is 35GW growth. At the end we'll keep more or less half of it. This is very clear. We stated that three or five years ago when we begin the strategy and we implement it. There is no acceleration. It came on our desk. There was some assets in France which were part of to have it to be farmed down. It has been done in very good way.
Thanks to this farm down, we have on these assets more than a double-digit return, much better. We don't give all the details because there are also counterpart. That's clear. It's to be clear, we have embedded in the strategy the fact that maybe we develop at 100% project, but when we farm down. By the way, I always explain to you several times, it's not only a matter for me of profitability, it's matter of managing the risks. I prefer to have two times 50% of two projects than one time 100%. It's just a matter of things could happen. That's, yes, I can tell you by the way, it was 16x EBITDA, if somebody give me an indication.
16 times EBITDA. I think 16 times EBITDA, I can tell you, I have no problem. I can't continue to develop my renewable business with this type of returns of 50% of my portfolio. This gives the cash also to recirculate the cash.
The risk.
The risk project. I think it's a smart way, and we'll stick on this strategy. No, there is no link between Mozambique and the U.S. We like both. We like LNG, okay. We want to continue to grow in a growing business, which is LNG. LNG is good. LNG is international gas. LNG is a way to decarbonize the coal-fired power plants in Asia and elsewhere. There is no fear about it. Maybe there may be some cycles. Today it's at the top, it could go down because we are not able in the industry, of course, to plan all the plants very smartly. We invest.
We think that the U.S., on the long term, is competitive because you have the U.S. gas price is about the lowest in the world, so $3-$5, even if $5 per million BTU, it will be very, very profitable. That's the reason why. Yes, we have Cameron LNG. Yes, we have ECA in Baja California, phase 1, which is being built and phase 2 may be in the near future. We are looking to other opportunities in the U.S. and it's independently of Mozambique.
Mozambique, just to make, as you asked me a question, I spent a day last week, Friday, a day in Cabo Delgado because my bet with the company, I said, "There is no way for me to envisage any restart of Mozambique as not as you don't allow me to visit Cabo Delgado." I can travel around with a car, not an army, but alone. We were only three of us, two cars. I want to go there. I want to check. I want, in fact, to go to see what if life is back to normal. I can tell you what I've seen from a security point of view is good. Even life is back to normal. Villages, people are back. It's one step. There is more steps to be done.
The two next steps, because there have been some, I would say, controversies about human rights, about the project, around the project. Not because of us, we inherited that from another co-acquisition. I want a clear view on these human rights issues, which is a salient issue for me. It's important. I have given a mission to a specialist of human rights, a very well-known NGO Doctor in France, Mr. Rufin, who has accepted. He's making his job, I'm waiting to see his report to understand exactly what is, I would say, what are these issues. If there are things to be done, we'll execute the recommendation. We'll be transparent on it. We will share, obviously, with our partners because it's a Mozambique energy decision to restart.
It's not a TotalEnergies decision. It's all the partners should be on board. There is a third step which I can use this question to deliver, is that of course we have to re-engage with the contractors. One key condition to restart will be to maintain the costs that we had. If I see the costs going up and up, we'll wait. We have wait, we can continue to wait, and the contractors will wait as well. I'm not in a hurry in this condition to restart. There are the security conditions I think are okay. Human rights, I need a report. Costs, I will need another report from my teams. I will ask them to re-engage, but smoothly. No hurry. Again, I can wait on Mozambique LNG.
If costs increase, we will rebid and we'll take the time. That's where we are on these projects. My message is positive, but it will take time. It's not in competition with the U.S. We are ready to finance both. We have the capacity to finance both within our $16 billion-$18 billion dollar. These are two good projects. It did all that, by the way, on the U.S. projects, we could say the same. What I see when we discuss with some projects developers is that costs are increasing as also. It's good to rush for volumes, but if you destroy the value because costs are too high, we know what is the impact at the end, and we experience it. That's the same for me, debate.
It's more a question today on, we are very convinced by the U.S. by the LNG market, but we need to have cost efficiency in the project. volume there again.
Thank you.
The next question is from Lucas Herrmann of Exane. Please go ahead.
Yeah, thanks very much. Good afternoon, Patrick, Jean-Pierre. Patrick, simple one for you, I think. Contracting LNG long term, not into portfolio, but out of port-portfolio. I mean, you've waited some time, I'd say, for the cycle to turn in terms of oil link contracts. You know, pricing has obviously improved quite significantly. Should we be expecting you to, you know, offload an increasing amount of your unhedged, or not unhedged, that's the wrong word, uncontracted volumes in to customers and give yourself greater visibility in ways on duration and long-term people and, you know, oil linkage into the future? That was it. Thank you.
You're right, Lucas. You can employ you if you want to manage my LNG business. It's the right time to contract long term. Of course, the buyers are. There is a little more willingness, by the way, of buyers because suddenly they see some value. Of course, when you contract long term, it's linked to Brent sometimes, so it's an arbitration between an reup and, I mean, gas, spot index and Brent. We have one project on which we want to balance the risks. It's PNG, you know, Papua LNG.
We said, of course, my team today, they would like to keep a volume, so we'll have the right to keep a volume, but most of the volume will be contracting on the long term because it's again, it makes zero, little sense to contract when you have some 11 or 10-11% Brent proposal from customers. When you are going up to above 13%, you can consider you are again there. That's the right time. Having said that, I think the philosophy for us is more to keep this balance of 70% long term, 30% spot. We have the balance sheet. We can use our balance sheet to keep part of the risk.
Okay, when you keep an exposure to a spot index, you take the risk like in 2020, but you keep the upside like these years. I think this is the, for me, the core of the business model of a company like TotalEnergies. The strong balance sheet must allow us to take these type of risks, spot risks. The 70/30, okay, it's not a Bible, but it's more or less we are comfortable with that in terms of management of risk in the company, as we grow. Today, there are some projects on which we will use the long-term contracts. Again, it's like by the way, we can also develop some project being spot, knowing that we can use this window of opportunities to then sign long-term contracts.
This is what we say even to our renewable people. You know, you want PPAs, but sometimes we could accept to develop a project, not with a PPA, a merchant project, with the idea that tomorrow, when we'd have the right opportunities, we will cover part of the exposure with a long-term PPA. That's the beauty of the balance sheet.
I'll tell Stéphane I'll see these in the post. Love to work with him.
The next question is from Paul Cheng of Scotiabank. Please go ahead.
Thank you. Good morning. Patrick, both BP and Shell have recently made a pretty large acquisition in the biogas area to jump-start their operation and also the growth in that area. Just curious that you did mention that you guys have a largest unit of the biogas in France that you just bought up. You also have a venture or joint venture that with Clean Energy to developing some-
Biogas project in the U.S. Do you think biogas will be a more important part of your lower low carbon energy business going forward? If so, do you think you need to have a larger platform, maybe through an acquisition to accelerate the growth there? That's the first question. The second question. First, thank you for freaking out the Integrated Power Business in starting in the first quarter. Can you tell us that what is the return on that business that currently that you achieved? Your peers that I think BP and Shell seems to start questioning the overall return on that business and just want to see that what's your view or what you guys have been able to achieve so far. Thank you.
Biogas. Honestly, M&A is a way to grow if you can deliver the value you pay. I have difficulty to be convinced to put several billion dollars in biogas. Why? We are doing things and we bought a platform in France. We just bought a new platform which will be announced soon in Poland. Why? It's quite a local business. It's like renewables, you know. The way you manage this, the technology is not high tech, you know. You can do larger ones, but there is no rocket science, huh. It's becoming a question of local development.
I'm sorry to tell you, it's not because you are good in a Nordic country to develop biogas, but you can be good in France, where the agriculture organization, the agricultural ecosystem is quite different. On this stage, we have not been convinced, and we have studied some of these files, that really these platforms will give us the edge to grow beyond the core country. We prefer, maybe we are wrong, to go step by step, not making a lot of noise with billion dollars, but we prefer, by the way, to make smart direct negotiation, but bidding with banks, which of course push price up in order to do that. There is a country where obviously we have more size, is the U.S.
The U.S. are more attractive for this perspective because, by the way, the system, the all the ACFS system and all that is more liquid. You can not only produce, but you can imagine to get more value of trading the volumes and mixing the biogas with others. The system, the carbon systems in markets in the U.S. give more liquidity to us. In Europe, it's fragmented. All the regulations are not the same. It's one of my advocacy when I go to Brussels to tell them that if they want this business to be developed, they should have a real unique European market and not the rules are different in all the countries, so it does not help to grow it. When you are in the gas, you look to biogas.
In particular, it's because there are customers looking for that. You have customers, you know, we have make the bet to go to LNG for transportation, which we would love to have BioLNG. The volume is not there is a good momentum for selling these molecules. The question is the scalability of all that, to be clear, and that's a question mark. We are looking to, we have some options in our portfolio. We grow it more locally. If we do something larger, it will be probably in the U.S. rather than in Europe. That's part of it. On, I mean, I listen to my peers, and again, I respect them, but I think being consistent in a strategy is just fundamental.
We have decided a strategy which is clear. Again, we are with the business model I described, we will be able to deliver a double digit business. That's the commitment we took. There is no reason for me today to derive from this objective and from the capacity to do it. Of course, we have to build that. We have to be, we make very good projects. Some are not as good, but I don't see what we should. I think, if we make zigzag on the strategy, we'll do nothing at the end of the day. I prefer to keep on my strategy, which is, and again, we are very consistent, by the way.
I think the decision I have proposed to the board to accelerate this segment, this reporting of the iPower, Integrated Power business. Having discussed with our shareholders after, you know, roadshows, in, after the presentation in New York in October and November, it is clear that there is a legitimate request from them. You invest this amount of money in this business, we want you to demonstrate the clarity, giving clarity of these businesses. I think this is a question. I begin chair, CEO for nine years now, I think it's the lesson is you need to stick on the strategy and not to be otherwise in this new low carbon business, we'll never reach the size.
I prefer to reach a size which is consistent, where we become a key player, and again, being able to grow a renewable business by 6, 7GW per year, we are among the largest one compared to the large. I think we can, and with mixing that with our capacity to use the balance sheet, to integrate that in a larger platform, trading, et cetera, will allow us to deliver this profitability. It's a, it's a commitment. It's also part, by the way, of our net zero ambition that we have and on which we are serious about it. At the end, for me, is positioning the company on the long term on a profitable business because we are convinced that the world will need more electricity and more electricity means higher prices.
The next question is from Alessandro Pozzi of Mediobanca. Please go ahead.
Hi there. Thank you for taking my questions. I have two. I think going back to the emissions, they came in below target in 2022, they were still up year-over-year. Part of it, I think, well, most of it, was driven by CCGT. I was wondering if you can give us perhaps a target for 2023, how you see Scope 1 and Scope 2 emission evolving. Also, I'm also seeing that Scope 3 has come down and I was wondering what are the main drivers for the reduction in Scope 3. That's the first question. The second question is on refining. Of course, the EU ban came into effect on the fifth of February.
I was wondering how you see the market for diesel in Europe with a ban. Will be able to source more diesel from somewhere else or it's gonna be as tight as especially in the second part of last year. Also, staying on refining, of course, we are seeing protests in France. Is that going to have an impact on Q1 margins? That's all for me. Thank you.
You said what? Q1 margin? Okay, emission targets for 2023. As I announced that we will lower the 25 target to 38, I think, the target for 2023 should be something like under 40 million tons. We'll have to repeat at least and lower the same performance went in 2022. No increase. We are accelerating the target. The board has made a linear decrease, I think so. Probably 39.8 exactly, if you want the figure. Jean-Pierre is putting that on the paper. On refining diesel market, honestly, it's the source of the product, well, there is diesel, you know. There is a strange machine which is organized on the world, which is, sort of, strange. You know, you
India and China are buying Russian coal, they transform it in an Indian and Chinese diesel, which will come to Europe. I'm not sure it's good for the climate, it's not good for the cost, it's not good for the customers, that will happen. I'm not worried about finding diesel. It will be just more expensive. It's a cost. The question for is it real? Does the market has already anticipated or not the disruption of the Russian diesel in the spread of the diesel, which were quite high? The question mark, I mean, it's difficult to answer to this. Normally, they anticipate. Did they, there is a cost issue of transportation cost. The margin, for the time being, I don't know.
Difficult for me to predict on Q1 2023. What I have observed since the beginning of the year is that the margin in January were higher than the last quarter. They came back probably because the market was anticipating again this rise. We see increasing charging. I think we are today at an average since the beginning of the year above $100 per ton, probably. Again, this market is still strong, but it is weakening. We'll see. Again, as it's difficult to understand exactly what the operators in the market are taking into account or not. This is what I think. Okay.
All right. Thank you.
The next question is from Henri Patricot of UBS. Please go ahead.
Everyone. Thank you for the presentation. Just one question less on your comments around the global LNG market and European gas in 2023. When you show European LNG imports potentially up to 25 million tons for this year, can you expand on the assumptions around European gas demand? Seems like this implied quite a rebound these years. Where do you see that coming from? Thank you.
I'm not sure to have understood the question. The European gas demand?
Down. Yes.
Yeah. In 2022, I think, what we have observed is more or less minus 15%. I mean, this is the figures I have in mind. I mean, I'm controlling. Stefan confirms. The question for me is will it be accelerated in 2023, you know, because we see a trend. It was a shift mainly from gas, by the way, over to oil. A certain number of manufacturing industries shifted from gas to fuel, which we can understand. The gas was at $200 per barrel, and the fuel was probably at $101-$120 per barrel. There was an arbitration down. Part of it has been too cold, but less than what we are thinking.
What will happen in 2023, I think again, this price, still today is $120 per barrel equivalent, $20 per million BTU, it's still high. It could damage, it could damage it. We gave you, I think, in the slide, we are quite clear about what we, our expectation. We think that EU LNG import will be higher in 2023 than in 2022, by 15-25 million tons. Maybe part of the demand destruction will come back. I'm not fully convinced. It's clearly linked to the price of it. Again, I think people, today, we are entering into a new world in Europe where energy prices are high, energy costs are high.
For energy consumers, I think the idea that they should be serious about the way they consume energy, will be deeper in their mind, and they will invest like we do. By the way, I think this is the only advice we can give to them. If you want to lower your energy invoice, you have to consume less. To be efficient like we are doing in TotalEnergies with our energy-saving plan for refineries, et cetera. Okay.
Okay. Thank you.
This was the last question. Back to you for the conclusion.
Thank you. Thank you to all of you. I've seen that you have been a good attendance to this, to this presentation. Next meeting will be in March, either the 21st or 23rd. We'll confirm you the date very soon to make this presentation on strategy, sustainability and climate based on around our sustainability and climate report, like we've done last year. It will be live. It will be live in London. No more with Teams because we like also to have the opportunity to have more discussions, informal discussions with all of you. Thank you for attending this presentation and supporting again the rating of the TotalEnergies shares. Thank you.