Total announced on 13 July the closing of its acquisition of Engie’s portfolio of upstream liquefied natural gas (LNG) assets for an overall enterprise value of $1.5 billion following its agreement signed in November 2017. 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.
Total is now the world’s second-largest player in the global LNG market. Total CEO Patrick Pouyanne said in a statement that the deal will give the company a worldwide market share of 10% percent. “… the group will manage an overall LNG portfolio of around 40 metric tonnes per annum (mtpa) by 2020. It also helps us to build a position in the US LNG market, with the 16.6% stake in the Cameron LNG project.”
In addition to the interest in Cameron LNG, the deal includes participating interests in other liquefaction plants, long-term LNG sales and purchase agreements, an LNG tanker fleet as well as access to regasification capacities in Europe.
| TOTAL's LNG PORTFOLIO BY 2020 | |
|---|---|
| Total Volume of LNG Managed | 40 mtpa |
| Liquefaction Capacity Portfolio | 23 mtpa, well distributed among the major LNG production areas of Middle East, Australia, Russia, US |
| Worldwide LNG Trading Contracts Portfolio | 28 mtpa to supply each LNG market with competitive and flexible resources |
| Regasification Capacities as a key Supplier for the European Market | 18 mtpa |
| Fleet | 18 LNG carriers, of which two will be floating storage, and regasification units |