Total to takeover Toshiba LNG portfolio

Total SA has agreed to take over Toshiba’s portfolio of LNG, including a 20-year tolling agreement for 2.2 million tonnes/year of LNG from Freeport LNG Train 3 in Texas and the corresponding gas transportation agreements on the pipelines feeding the terminal. Train 3 is expected to start commercial operations by second-quarter 2020.

Jun 4th, 2019

Total SA has agreed to take over Toshiba’s portfolio of LNG, including a 20-year tolling agreement for 2.2 million tonnes/year of LNG from Freeport LNG Train 3 in Texas and the corresponding gas transportation agreements on the pipelines feeding the terminal. Train 3 is expected to start commercial operations by second-quarter 2020.

Under the transaction, Total will acquire all shares of Toshiba America LNG for $15 million to be paid by Total to Toshiba and will be assigned all contracts related to the 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.

The takeover is in line with Total’s strategy to become a major LNG portfolio player, said Philippe Sauquet, president gas, renewables, and power at Total. “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 million-tpy portfolio,” he said.

The transaction is expected to close by yearend.

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