03 Jun Total expands LNG portfolio with takeover of Toshiba’s US assets
Total has signed an agreement with Toshiba that will see it take over the Japanese group’s LNG business in the US, as the French energy giant looks to become a major player in the global LNG market.
Under the transaction, Total will acquire all the shares of Toshiba America LNG corporation for US$15 million, but will receive $815 million from Toshiba to take over all the contracts linked to the business.
The acquisition will add 2.2 million tonnes per annum (Mtpa) of LNG to Total’s US business through a 20-year tolling agreement from Freeport LNG train 3 in Texas. Train 3 of the Freeport LNG plant is expected to start commercial operations by Q2 2020.
“Adding 2.2Mtpa of LNG to our existing positions in the US, in particular Cameron LNG, will enable optimisations of the supply and operations of these LNG sources,” 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 7Mtpa portfolio,” he added.
The deal follows Total’s proposed $8.8 billion acquisition of Anadarko’s oil & gas assets outside the US, which includes an LNG project in Mozambique.