Total strengthens its US LNG business
Published by Callum O'Reilly,
Tanks and Terminals,
Total has signed an agreement with Toshiba to take over its portfolio of LNG. It includes a 20-year tolling agreement for 2.2 million tpy 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 2Q20.
Under the transaction, Total will acquire all the shares of Toshiba America LNG Corp. for a consideration of US$15 million to be paid by Total to Toshiba and will be assigned all contracts related to its LNG business by Toshiba Energy Systems and Solutions Corp. for a consideration of US$815 million to be paid by Toshiba to Total.
Total will therefore receive from Toshiba a net cash consideration of US$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 million tpy 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,” commented 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”.
The proposed transaction is subject to the applicable legally required approvals by the regulatory authorities and partners. The transaction is expected to close by the end of 2019.
Read the article online at: https://www.tanksterminals.com/terminals/03062019/total-strengthens-its-us-lng-business/
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