Total declares the closing of the acquisition of Engie’s portfolio of upstream liquefied pure fuel (LNG) belongings for an general enterprise worth of $1.5 billion. Additional funds of as much as $550 million could possibly be payable by Total in case of an enchancment within the oil markets within the coming years.
This portfolio consists of taking part pursuits in liquefaction vegetation, notably the curiosity within the Cameron LNG mission within the U.S., long run LNG gross sales and buy agreements, an LNG tanker fleet in addition to entry to regasification capacities in Europe.
“Acquiring Engie’s LNG enterprise is an actual step change for Total permitting us to leverage measurement and adaptability within the quick rising and more and more commoditized LNG market. This transaction makes Total the second largest world LNG participant among the many majors with a worldwide market share of 10% and the group will handle an general LNG portfolio of round 40 MMton/12 months by 2020. It additionally helps us to construct a place within the U.S. LNG market, with the 16.6% stake within the Cameron LNG mission,” commented Patrick Pouyanné, CEO of Total.
Following the transaction, Total takes over the groups answerable for the upstream LNG actions at Engie. Total’s LNG portfolio by 2020:
- A complete quantity of LNG managed of 40 MMton/12 months.
- A liquefaction capability portfolio of 23 MMton/12 months, properly distributed among the many main LNG manufacturing areas: Middle East, Australia, Russia and the U.S.
- A worldwide LNG buying and selling contracts portfolio of 28 MMton/12 months to provide every LNG market with aggressive and versatile sources.
- A task of a key provider for the European market with regasification capacities of 18 MMton/12 months.
- A fleet of 18 LNG carriers, of which 2 FSRUs (floating storage and regasification models).
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