French energy firm Total has signed an agreement to acquire Japanese firm Toshiba’s portfolio of liquefied natural gas (LNG) business.

This agreement covers a 20-year tolling agreement for 2.2 million tonnes per annum (Mtpa) of LNG from Freeport LNG train 3 in Texas as well as the associated gas transportation agreements on the pipelines that feed the terminal.

Train 3 of the Freeport LNG plant is slated to begin commercial operations by the second quarter of next year.

According to the deal, Total will purchase all the shares of Toshiba America LNG for $15m.

As per the terms of the deal, Total will purchase all the shares of Toshiba America LNG  for $15m. It will also be assigned all contracts related to the LNG business by Toshiba Energy Systems and Solutions for $815m, which is to be paid by Toshiba to Total.

Therefore, the French firm will receive from Toshiba a net cash consideration of $800m, which is payable at the completion date.

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Total gas, renewables and power president Philippe Sauquet said: “The takeover of Toshiba’s LNG portfolio is in line with Total’s strategy to become a major LNG portfolio player. 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.

“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.”

The proposed deal is subject to regulatory approvals. It is expected to close by the end of this year.

“Total is set to become one of the leading US LNG exporters by 2020 with a 7Mtpa portfolio.”

With a presence in more than 130 countries, Total is a leading LNG company with an overall portfolio of around 40Mtpa (million tonnes per annum) by 2020 and a market share of 10% in the world.

It sold 21.8Mt of LNG last year.

It has stakes in liquefaction plants in several countries such as Russia, Norway, Qatar, Nigeria, the UAE, Oman, Egypt, Australia, the US, Angola and Yemen.