French oil and gas company Total has agreed to take over Japanese multinational Toshiba’s portfolio of liquefied natural gas (LNG) projects.
This transaction includes a 20-year agreement for 2.2 million tonnes per annum (Mtpa) of LNG from the Freeport LNG Train 3 in Texas, as well as corresponding gas transportation agreements feeding the terminal. Train 3 is expected to start commercial operations by the second quarter of 2020.
Total will acquire all the shares of Toshiba America LNG for a consideration of $15m, and will be assigned all contracts relating to Toshiba Energy Systems and Solutions’ LNG business for a consideration of $815m from Toshiba.
Total President of Gas, Renewables and Power 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 optimizations 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.”
Chinese energy company ENN group initially agreed to buy Toshiba’s LNG portfolio in November 2018, but cancelled the agreement in April 2019 owing to a failure to obtain approvals from shareholders.
The transaction with Total is expected to close by the end of 2019, subject to applicable legally required approvals by partners and regulatory authorities.