Total has agreed to take over Toshiba America LNG, strengthening its U.S. LNG business. The agreement includes a 20-year tolling agreement for 2.2 million tonnes per annum (Mtpa) of LNG from Freeport LNG train 3 in Texas and 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.
Under the transaction, Total will acquire all the shares of Toshiba America LNG corporation for a consideration of $15 million 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 $815 million to be paid by Toshiba to Total.
Total will therefore receive from Toshiba a net cash consideration of $800 million payable at 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 Mtpa of LNG to our existing positions in the U.S., in particular Cameron LNG, will enable optimisations of the supply and operations of these LNG sources,” commented 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”.
The transaction is expected to close by the end of 2019.
For more information visit www.total.com
