Total announced that it has signed an agreement with its French compatriot Engie to acquire its portfolio of upstream LNG assets for an overall enterprise value of $1.49 billion. “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 portfolio includes participating interests in gas liquefaction plants, notably the interest in the Cameron LNG project, long term LNG SPAs, 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. The combination of these two complementary portfolios will allow the group to manage an overall volume of around 40 MMT/Y of LNG by 2020, making Total the second largest global player among the majors with a worldwide market share of 10%”, commented Patrick Pouyanné, Chairman & CEO of Total.
The proposed transaction is subject to the applicable legally required consultation and notification processes with employee representatives as well as approvals by the relevant regulatory authorities and partners on certain contracts, the French company reminded, adding that the transaction is expected to close by mid-2018 and will have an effective date of 1-Jan-2018.

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In summarize, the transaction with Engie will bring to Total:
* 2.5 MMT/Y of liquefaction capacity to reinforce Total's existing portfolio, bringing it to 23 MMT/Y by 2020, with: 16.6% equity stake in the Cameron LNG export project which is currently under construction in Louisiana;
* 5% equity stake in the 3.6 MMT/Y first train of the Shell-operated Idku LNG project in Egypt (which has been out of service since Jan-2014 due to the lake of feedgas);
* A portfolio of long-term LNG SPAs, enabling the French company in increase its overall portfolio to 28 MMT/Y 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 MMT/Y in Europe, which will be added to Total’s existing capacity of 4 MMT/Y;
* A fleet of 10 LNG tankers which will be added to Total’s existing 3 LNG carriers;
* 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 MMT/Y, Total remarked.