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Total becomes world #2 LNG player

Total has completed its acquisition of Engie’s portfolio of upstream LNG assets for an overall enterprise value of $1.5bn*, making it the second largest global LNG player among the  majors. The portfolio includes participating interests in liquefaction plants, most notably an 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.

‘Acquiring Engie’s LNG business is a real step change for Total allowing us to leverage size and flexibility in the fast growing and increasingly commoditised LNG market. This transaction makes Total the second largest global LNG player among the majors, with a worldwide market share of 10%, and the group will manage an overall LNG portfolio of around 40mn t/y 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,’ commented Patrick Pouyanné, Chairman & Chief Executive Officer of Total.

Total’s LNG portfolio by 2020 is expected to include:

  • A total volume of LNG managed of 40mn t/y.
  • A liquefaction capacity portfolio of 23mn t/y, well distributed among the major LNG production areas of the Middle East, Australia, Russia and the US.
  • A worldwide LNG trading contracts portfolio of 28mn t/y, to supply each LNG market with competitive and flexible resources.
  • The role of a key supplier for the European market with regasification capacities of 18mn t/y.
  • A fleet of 18 LNG carriers, of which two are floating storage and regasification units (FSRUs).

*Additional payments of up to $550mn could be payable by Total in case of an improvement in the oil markets in coming years

News Item details


Journal title: Petroleum Review

Subjects: Economics, business and commerce, Liquefied natural gas, LNG markets

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