pipeline-logo-new.svg

Search

Categories

LNG shipping.jpg

Total buys Engie’s LNG business for US$1.49 bln

Nov 09, 2017
2 min read
Print this page

French oil giant Total has signed an agreement with Engie to acquire its portfolio of upstream liquefied natural gas (LNG) assets for $1.49 billion to become the second largest global LNG player

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.

Additional payments of up to $550 million could be payable by Total in case of an improvement in the oil markets in the coming years.

“The acquisition of Engie’s upstream LNG business enables Total to accelerate the implementation of its strategy to integrate along the full gas value chain, in an LNG market growing strongly at 5 per cent to 6 per cent per year. The combination of these two complementary portfolios will allow the Group to manage an overall volume of around 40 million tonnes of LNG per year by 2020, making Total the second largest global player among the majors with a worldwide market share of 10 per cent”, commented Patrick Pouyanné, chairman & chief Executive Officer of Total.

 

With the equity stake in the Cameron LNG project, Total will also become an integrated player in the US LNG market, where the Group is already a gas producer”

The deal is expected to close by mid 2018.

Following the transaction, Total will take over the teams in charge of the LNG activities at Engie, which represents around 180 employees. In addition Total and Engie agreed to cooperate to promote the use of biogas and renewable hydrogen, with Engie becoming Total's priority supplier in this field.

RELATED POSTS