Total is to takeover Toshiba’s LNG portfolio in a bid to become a major US LNG player.
This includes a 20-year tolling agreement for 2.2 mill tonnes per annum of LNG from Freeport LNG Train 3 in Texas and the corresponding gas transportation agreements on the pipelines feeding the terminal.
Train 3 is expected to start commercial operations by the second quarter of 2020.
Under the transaction, Total will acquire all of the shares of Toshiba America LNG corporation for $15 mill and will be assigned all contracts related to the LNG business by Toshiba Energy Systems and Solutions Corp for $815 mill.
As a result, Total will receive $800 mill from Toshiba on the closing date.
“The takeover of Toshiba’s LNG portfolio is in line with Total’s strategy to become a major LNG portfolio player. Adding 2.2 mill tonnes per annum of LNG to our existing positions in the US, in particular Cameron LNG, will enable optimisations of the supply and operations of these LNG sources,” said Philippe Sauquet, Total’s President Gas, Renewables and Power. “Already an integrated player in the US gas market, Total is set to become one of the leading US LNG exporters by 2020 with a 7 mill tonnes per year portfolio.”
This transaction is expected to close by the end of this year.
Total is the second-largest private global LNG player, with an overall LNG portfolio of around 40 mill tonnes per annum by 2020 and a worldwide market share of 10%.
With 21.8 mill tonnes of LNG sold in 2018 and through its stakes in liquefaction plants located in Qatar, Nigeria, Russia, Norway, Oman, Egypt, the UAE, the US, Australia, Angola and Yemen, the French energy giant sells LNG in all global markets.