Patrick Pouyanne: Okay. No, virtual power plant, what is it? It’s just integrated — you can’t build assets, you can also aggregate some assets. And I think it’s the idea that this Quadra company has established is very strong. We are #2 in the German market. They have been able to connect with 4,000 wind renewable developer in Germany, quite a large base, aggregating 9 gigawatts, which is a big volume, of course. With that, you can trade it or you can even if you have pricing it and you make EUR 2 megawatt hour of margin out of it. It gives you access to something you don’t have any capital employed, almost nothing. It’s an acquisition, I would say, of people with know-how and the knowledge. There is no assets. So I can mention to you about the price that we acquired is around EUR 200 million to EUR 250 million.
So it’s not very expensive, but you have a lot of skills. You are — you have access, it’s a complement to our model. We have some assets, and we try to complement it with again, low capital employed base in order to develop the business. And it gave us — again, we explained the integration, it’s important to have sources of supply. And then you have customers, you may be intermediation, if it gives you more flexibility for our trading platform in Germany. Germany, again, it’s — for us, it’s an interesting market. I repeat it. This is first 1 of the key target because it’s really — the mix will be renewable and gas plus ETS, so that means quite a good price. A lot of potentials. So we are building step-by-step our position in Germany. And this 1 is interesting because we enter in a big way, again, it’s the #2 of this market and we have a large base, 9 gigawatts, some PPAs, some more short term.
So I think it’s an interesting way to progress in the integrated product strategy on this important market. On the second one, volatility gas market for the winter. I don’t know if it will be cold. Today, it’s a little cold in Paris, to be honest, since the beginning of the week. Even if I hope it will not be too cold for the final of the Rugby World Cup tomorrow or day after tomorrow. Now but more seriously, it’s very volatile. It’s clear what the market’s intention. I’ll be clear. There is no margin in this market. So each time you have a hiccup, the strike in Australia, then you had the stoppage of the Tamar field in Israel, which was going to Egypt and back to LNG to Europe. Then you had, of course, this Baltic pipeline. And so each time you have a hiccup proof, the market is taking almost 30%, 40% in the day.
So that’s full but it’s super attention. So we always said that for this winter, by the way, the full or more around $16 per million BTU, we still remain high. If yes, the storage are full, but we don’t have enough storage in Europe to go through the winter if the winter is cold. It’s not only me, it’s repeated by the IEF recently. So in any event in this condition is pushing — is putting the price up knowing that you noticed as well, but the Asian buyers are back in the LNG business. They are back today, the GK is TTF plus $2 to $3, which means that, in fact, they are ready to buy. And today, most of the cargoes are going to Asia because the spot market is in favor of Asia. So you might have in this type of market, more cool for LNG coming from Asia, so it put an additional tension on this LNG market.
So let’s see, okay. The weather will be important again. And again, if there is any, it’s clear that if you have like 1 year ago, 1 and 2 years ago, an event like in Freeport on 1 plant, this will be obviously immediately reflected in the gas market. So — but while again, generally, we are wrong on the future, but this attention, I’m sure there is a market — a gas market in the attention today.
Operator: Next question is from Michele Vigna of Goldman Sachs.
Michele Vigna: I wanted to ask 2 questions, if possible. The first 1 is back to M&A, but thinking of it more countercyclically, energy prices are quite high. A lot of companies are consolidating. I was wondering if this could actually be a good time to dispose of some of the E&P assets that may be more marginal to your portfolio? And maybe again, going countercyclical in some of the energy transition assets that have substantially deteriorated over the last year. And then remaining on the theme of clean tech and renewables. Congratulations on the very consistent delivery of earnings of cash flow. I was wondering if you could perhaps unpick a little bit for us the $0.5 billion you make in integrated power per quarter between renewable CCGTs and trading, definitely highlighting the integrated nature of that business, but also perhaps helping us to understand a bit more the scale of those different moving parts?
Patrick Pouyanne: Yes. On the second question, I think Jean-Pierre mentioned, it was coming from 3 segments: renewables, flexible asset CCGTs and trading, and also marketing business, by the way. So the supply business to customers, it’s also for them. So consider that it’s coming from all of them. So it’s — everything is contributing to this integrated power and in a positive way. So that’s what I can just explain to you. On the first question, it’s clear, as you know that I’m a strong believer that in M&A, it’s better to become too cyclical than to be procyclical. That’s very clear. But for me, in this business, the commodity business, where you have cycles, I mean, you take a risk when you make acquisitions out of the top.
So yes, you are right on E&P. But by the way, we’ve just done it. I remind you, Michele, but we just divested our Canadian sands assets at the top of the market, and we will receive $4.4 billion plus an extra earnout next year of $400 million. So I’m happy. It’s a good value for these assets. And so we’ve done it. We’ve just done it. We have cleaned a lot of the portfolio in the last — since 2015, we rotated a lot. We have cleaned a lot, but does not mean that — I don’t think we have a lot of one. We might have, as I said, some quite — you know that some exposure, which are high in some countries, like, for example, Nigeria and where we want to continue to invest. So we might be willing to use that environment to reshape the Nigeria portfolio.
I’m not very — the all onshore in Nigeria for me is many — has many issues about the type of assets, and it’s a good environment to monetize them if we find some buyers, of course. But part of it we could do. But we have clean, I would say, the portfolio in terms of most of the portfolio today are in the definition of low cost, low emissions have been really — the work has been done. So it’s more optimizing things in some countries where we could do. And I would prefer, for example, to be at higher stake when we are operator and mainly lower stake where nonoperated. So if we have a nonoperated position to divest them, to reinforce, I would say, when we are operator in control of our future, I like to be more in control of our destiny rather than just being a nonoperated company, even if it’s operated by a large peer.
And then the other question, of course, that you mentioned is about the transition assets. Today, our priority, and I think when we’ve done this morning with Quadra [indiscernible] is more as I explained to you in September, to complement in some key markets through some targeted acquisitions. I mentioned [indiscernible] Texas, flexible assets in Texas, gas-fired power plants will come one of these days, or what we’ve done in Germany with this Quadra, we might look to rather than making a big acquisition. Because even if it’s derated, it’s still high. So I think it could go even lower and lower. So — and honestly, when you think, for example, to offshore wind, I mean, I’m very happy to build ourselves for portfolio with exactly the 1 in New York, where we control what we do.
We are part of the — will be covered by CFD, part of it will be merchant. So that’s better for us because, again, our strategy is not to acquire a portfolio of fully secured renewable assets with no upside. It’s not what we described to you. So I think it’s better to continue and to deliver our strategy in the way we explained to you end of September.
Operator: The next question is from Irene Himona of Societe Generale.
Irene Himona: Two questions, please. You formed a new joint venture with Adani Green in India during the quarter. Earlier this year, when there was the financial crisis with the Adani Group, I think you had said that you would likely slow down that Indian expansion and wait for the outcome. Can we presume that you’re satisfied with that group’s financial situation and therefore, back to normal in terms of total continuing to invest in Indian renewables? And then the second question on Chemicals where, obviously, it’s a weak industry. Your 9-month volumes are down. When you look at the balance of new capacity versus this weak demand picture, what is your expectation for that business over the next year?
Patrick Pouyanne: Okay. On India, I think, again, what we said in the beginning of the year is that we wanted to have a clarity on the situation. We have engaged with Adani Group. You have noticed that what we’ve done, in fact, for me, you should make a difference between — we are a shareholder of Adani Green, not of Adani Group. Adani Green is a strong company with a large base of assets. The question for us is how do we continue to contribute to the development of Adani Green. We could do — we — what we have elected is to do it through a JV between Adani Green and ourselves. So let’s be clear, this is a venture where we have direct access to the assets, which is fundamental. So it’s not putting — we didn’t put more money in Adani Green as a shareholder, but we made it and we help and we contribute to the development of Adani Green making access direct to the asset.
