Total has agreed with Toshiba to take over its portfolio of LNG. It includes a 20-year agreement for 2.2 million tonnes per annum (Mtpa) of LNG from Freeport LNG train 3 in Texas and the gas transportation agreements on the pipelines feeding the terminal. Train 3 of the Freeport LNG plant is planned to start commercial operations by the second quarter of 2020.
Total will now acquire all the shares of Toshiba America LNG corporation for 15 million USD to be paid by Total to Toshiba and will be assigned all contracts regarding their LNG business by Toshiba Energy Systems and Solutions Corp. for 815 million USD to be paid by Toshiba to Total. Total will also receive from Toshiba a net cash consideration of 800 million USD payable at the closing date.
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The takeover of Toshiba’s LNG portfolio is in line with Total’s strategy to become a major LNG portfolio player. Adding 2.2 Mtpa 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
stated Philippe Sauquet, President Gas, Renewables and Power at Total.
The proposed transaction is now subject to relevant approvals, and is expected to close by the end of 2019.
