Total closes acquisition of Engie’s LNG business

July 13, 2018
Total SA has closed on its acquisition of LNG assets from Engie SA for an overall enterprise value of $1.5 billion with possible further payments of $550 million if oil markets improve in the coming years.

Total SA has closed on its acquisition of LNG assets from Engie SA for an overall enterprise value of $1.5 billion with possible further payments of $550 million if oil markets improve in the coming years (OGJ Online, Nov. 9, 2017). The deal includes interests in liquefaction plants, long-term LNG sales and purchase agreements, an LNG tanker fleet, and access to regasification capacities.

Total is acquiring 2.5 million tonnes/year (tpy) of liquefaction capacity with 16.6% interest in the Cameron LNG liquefaction plant in Louisiana—where three trains are currently under construction and expected to enter service in 2019 and two more can be added—as well as 5% stake in the first train of the Idku LNG project in Egypt.

The deal will give Total a liquefaction portfolio of 23 million tpy by 2020, with interests in the Middle East, Australia, Russia, and the US. It will also have a worldwide LNG trading portfolio of 28 million tpy and European regasification capacity of 18 million tpy. Total’s 2020 fleet will include 16 LNG carriers and two floating storage and regasification units, one to be stationed off Ivory Coast and the other off Myanmar.

Combining its overall interests in liquefaction plants and portfolio of third-party supply contracts, Total will manage 40 million tpy of global LNG volume by 2020, making it “the second-largest global player among the majors with a worldwide market share of 10%,” commented Patrick Pouyanne, Total chairman and chief executive officer.