Acquisition Total Acquires Engie’s Upstream LNG Business
Post the transaction, Total will become the second largest LNG player in the world with a global market share of 10 %. The company will also manage an overall volume of around 40 million tonnes of LNG per year by 2020.
Paris/France — Total has recently signed an agreement with Engie to acquire its portfolio of upstream liquefied natural gas (LNG) assets for an overall enterprise value of 1.49 billion dollars. This portfolio includes participating interests in liquefaction plants, notably the interest in the Cameron LNG project in the US, long term LNG sales and purchase agreements, an LNG tanker fleet as well as access to regasification capacities in Europe. Additional payments of up to 550 million dollars could be payable by Total in case of an improvement in the oil markets in the coming years.
The proposed transaction is subject to the applicable legally required consultation and notification processes with employee representatives as well as approvals by the relevant regulatory authorities and partners on certain contracts. The transaction is expected to close by mid-2018 and will have an effective date of January 1, 2018.
Following the transaction, Total will take over the teams in charge of the LNG activities at Engie, which represents around 180 employees.
In addition, in parallel with this transaction, Total and Engie have agreed to cooperate to promote the use of biogas and renewable hydrogen, with Engie becoming Total’s priority supplier in this field.