Total has signed an agreement with Engie to acquire its portfolio of upstream liquefied natural gas (LNG) assets for an overall enterprise value of $1.49 billion. 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.
This transaction will bring to Total:
- 2.5 MTPA of liquefaction capacity to reinforce Total’s existing portfolio, bringing it to 23 MTPA by 2020, with:
- 16.6% equity stake in the Cameron LNG liquefaction plant with 3 trains currently under construction in Louisiana and the potential to expand by adding two further trains.
- 5% equity stake in the first train of the Idku LNG project in Egypt.
- A portfolio of long-term LNG purchase and sale contracts, enabling the Group in increase its overall portfolio to 28 MTPA by 2020, with a diversified supply from Algeria, Nigeria, Norway, Russia, Qatar and the USA, and outlets balanced between Europe and Asia.
- The access to regasification capacities of 14 MTPA in Europe, which, combined with the existing 4 MTPA of Total, allows the Group to balance its consolidated purchase and sales portfolio.
- A fleet of 10 LNG tankers which will be consolidated with the 3 LNG carriers of Total.