Total will become the second-largest player in LNG behind Shell, after striking a deal to acquire Japan’s Toshiba’s LNG portfolio.
Under the agreement, Toshiba will pay US$800M to Total to take over its LNG portfolio, including a 20-year tolling agreement for 2.2 mta from Freeport LNG train 3 in Texas and the corresponding gas transportation agreements on the pipelines feeding the terminal. Train 3 of the Freeport LNG plant is expected to start commercial operations by Q2 2020.
Under the transaction, Total will acquire all the shares of Toshiba America LNG Corporation for a consideration of US$15M to be paid by Total to Toshiba and will be assigned all contracts related to their LNG business by Toshiba Energy Systems and Solutions Corp for a consideration of US$815M to be paid by Toshiba to Total.
If it receives regulatory approvals, the transaction is expected to close by the end of 2019.