LNG: Total Buys Engie Upstream Business

Engie’s portfolio of upstream LNG assets has been bought for $1.5 billion by Total.

Additional payments of up to $ 550 million could be payable in case of an improvement in the oil markets in the coming years.

The transaction makes Total the second largest global LNG player among the majors with a worldwide market share of 10 percent, with the group managing an overall LNG portfolio of around 40 Mt per year by 2020.

The portfolio includes participating interests in liquefaction plants, notably the interest in the Cameron LNG project in the U.S., long term LNG sales and purchase agreements, an LNG tanker fleet as well as access to regasification capacities in Europe.

Patrick Pouyanné, Chairman and CEO of Total said, “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 commoditized LNG market. It also helps us to build a position in the US LNG market, with the 16.6 percent stake in the Cameron LNG project”.
Following the transaction, Total takes over the teams in charge of the upstream LNG activities at Engie.