French oil major Total has signed a deal with Japan’s Toshiba to take over its portfolio of liquefied natural gas assets, a deal which actually will put $800 million in Total’s pocket, Kallanish Energy learns.
Under the terms of the transaction, Total will acquire all the shares of Toshiba America LNG for $15 million.
The buyer also will be assigned all contracts related to the LNG business by Toshiba Energy Systems and Solutions Corp. for $815 million — paid by Toshiba to Total.
“The takeover of Toshiba’s LNG portfolio is in line with Total’s strategy to become a major LNG portfolio player. Adding 2.2 million tonnes per annum (Mtpa) of LNG to our existing positions in the U.S., in particular (the) Cameron LNG (export facility), will enable optimizations of the supply and operations of these LNG sources,” said Philippe Sauquet, president Gas, Renewables and Power, at Total.
“Already an integrated player in the U.S. gas market, Total is set to become one of the leading U.S. LNG exporters by 2020, with a 7 Mtpa portfolio,” Sauquet added.
The deal includes a 20-year tolling agreement for 2.2 Mtpa of LNG from the Freeport (Texas) LNG export facility’s Train 3, and 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 transaction is expected to close by the end of 2019.
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