USA: Liquefied Natural Gas Total Acquires Toshiba’s LNG Portfolio in the US
Total has signed an agreement with Toshiba to take over its portfolio of liquefied natural gas (LNG). It includes a 20-year tolling agreement for 2.2 million tonnes per annum (Mtpa) of LNG from Freeport LNG train 3 in Texas.
Paris/France — Total announced that it will acquire all the shares of Toshiba America LNG corporation for $ 15 million and will be assigned all contracts related to their LNG business for a consideration of $ 815 million. Total will therefore receive from Toshiba a net cash consideration of $ 800 million payable at the closing date. Apart from the tolling agreement of LNG from Freeport LNG train 3, the deal comprises the corresponding gas transportation agreements on the pipelines feeding the terminal. Train 3 of the Freeport LNG plant is expected to start commercial operations by Q2 2020.
The takeover is adding 2.2 Mtpa of LNG to the groups existing positions in the US. Philippe Sauquet, President Gas, Renewables and Power at Total commented that the company would be set to become one of the leading US LNG exporters by 2020 with a 7 Mtpa portfolio”.
The proposed transaction is subject to the applicable legally required approvals by the regulatory authorities and partners. The transaction is expected to close by the end of 2019.
Total is the second-largest private global LNG player, with an overall LNG portfolio of around 40 Mtpa by 2020 and a worldwide market share of 10 %. Through its stakes in liquefaction plants located in Qatar, Nigeria, Russia, Norway, Oman, Egypt, the United Arab Emirates, the United States, Australia, Angola and Yemen, the Group sells LNG in all global markets.