Total announces the closing of the acquisition of Engie’s portfolio of upstream LNG assets for an overall enterprise value of US$1.5 billion.
Additional payments of up to US$550 million could be payable by Total in case of an improvement in the oil markets in the coming years.
This portfolio includes participating interests in liquefaction plants, notably the interest in the Cameron LNG project in the US, long-term LNG sales and purchase agreements, an LNG tanker fleet, as well as access to regasification capacities in Europe.
“Acquiring Engie’s LNG business is a real step change for Total allowing us to leverage size and flexibility in the fast growing and increasingly commoditised LNG market. This transaction makes Total the second largest global LNG player among the majors with a worldwide market share of 10% and the Group will manage an overall LNG portfolio of around 40 Mt per year by 2020. It also helps us to build a position in the US LNG market, with the 16.6% stake in the Cameron LNG project,” commented Patrick Pouyanné, Chairman and Chief Executive Officer of Total.
Following the transaction, Total takes over the teams in charge of the upstream LNG activities at Engie.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/13072018/total-acquires-engies-upstream-lng-assets/