Total has signed a deal to acquire Japan’s Toshiba’s LNG portfolio which could see them become the second-largest player in LNG behind Anglo-Dutch energy giant Shell. The agreement contains that Toshiba pays US$800M to Total to take over its LNG portfolio, including a 20-year tolling agreement for 2.2 MTA from Freeport LNG train 3 in Texas and the corresponding gas transportation agreements on the pipelines feeding the terminal.
With the deal, Total will acquire all the shares of Toshiba America LNG Corporation for a consideration of US$15M to be paid by Total to Toshiba and will be assigned all contracts related to their LNG business by Toshiba Energy Systems and Solutions Corp for a consideration of US$815M to be paid by Toshiba to Total.
The Total president gas, renewables, and power, Philippe Sauquet, said; “The takeover of Toshiba’s LNG portfolio is in line with Total’s strategy to become a major LNG portfolio player.
“Adding 2.2 MTA of LNG to our existing positions in the US, in particular, Cameron LNG, will enable optimizations of the supply and operations of these LNG sources. 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-MTA portfolio.”
If it receives regulatory approvals, the transaction is expected to close by the end of 2019.