Total To Buy Toshiba's LNG Portfolio

(RTTNews) - Total (TTA.L, TTFNF.PK, TOT) said it agreed to buy portfolio of liquefied natural gas from Toshiba. It includes a 20-year tolling agreement for 2.2 million tonnes per annum or Mtpa of LNG from Freeport LNG train 3 in Texas and the corresponding gas transportation agreements on the pipelines feeding the terminal. The transaction is expected to close by the end of 2019.

It is expected that Train 3 of the Freeport LNG plant will start commercial operations by the second-quarter of 2020.

As per the deal, Total will acquire all the shares of Toshiba America LNG corporation for a consideration of $15 million 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 $815 million to be paid by Toshiba to Total.

So, Total will receive from Toshiba a net cash consideration of $800 million payable at the closing date.