By November 15, 2017 Read More →

France’s Total becomes 2nd largest global LNG company with $1.49 billion acquisition


Total photo.

Total expects LNG market to grow 5% to 6% annually

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, according to a press release.
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.
“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% to 6% per year,” said Patrick Pouyanné, Chairman & Chief Executive Officer of Total.
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%.”
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.
“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,” said Pouyanné.
The transaction is expected to close by mid 2018 and will have an effective date of 1st Jan. 2018.
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
  • Overall, combining its interests in liquefaction plants and its portfolio of third party supply contracts, the Group will manage a global volume of nearly 40 MTPA.


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