AGL 38.50 Increased By ▲ 0.28 (0.73%)
AIRLINK 129.02 Increased By ▲ 0.05 (0.04%)
BOP 8.73 Increased By ▲ 0.88 (11.21%)
CNERGY 4.73 Increased By ▲ 0.07 (1.5%)
DCL 8.65 Increased By ▲ 0.33 (3.97%)
DFML 38.66 Decreased By ▼ -0.28 (-0.72%)
DGKC 85.11 Increased By ▲ 3.17 (3.87%)
FCCL 35.20 Increased By ▲ 1.78 (5.33%)
FFBL 75.50 Decreased By ▼ -0.21 (-0.28%)
FFL 12.85 Increased By ▲ 0.03 (0.23%)
HUBC 110.52 Increased By ▲ 0.16 (0.14%)
HUMNL 14.40 Increased By ▲ 0.39 (2.78%)
KEL 5.48 Increased By ▲ 0.33 (6.41%)
KOSM 7.71 Increased By ▲ 0.04 (0.52%)
MLCF 41.33 Increased By ▲ 1.53 (3.84%)
NBP 71.52 Decreased By ▼ -0.80 (-1.11%)
OGDC 191.50 Increased By ▲ 3.21 (1.7%)
PAEL 26.40 Increased By ▲ 0.77 (3%)
PIBTL 7.50 Increased By ▲ 0.13 (1.76%)
PPL 157.40 Increased By ▲ 4.73 (3.1%)
PRL 25.96 Increased By ▲ 0.57 (2.24%)
PTC 18.83 Increased By ▲ 1.13 (6.38%)
SEARL 82.99 Increased By ▲ 0.57 (0.69%)
TELE 7.82 Increased By ▲ 0.23 (3.03%)
TOMCL 33.05 Increased By ▲ 0.48 (1.47%)
TPLP 8.40 Decreased By ▼ -0.02 (-0.24%)
TREET 16.80 Increased By ▲ 0.02 (0.12%)
TRG 56.60 Increased By ▲ 0.56 (1%)
UNITY 28.95 Increased By ▲ 0.17 (0.59%)
WTL 1.35 No Change ▼ 0.00 (0%)
BR100 10,781 Increased By 122.5 (1.15%)
BR30 31,929 Increased By 597.9 (1.91%)
KSE100 100,268 Increased By 999 (1.01%)
KSE30 31,270 Increased By 237.7 (0.77%)

Total said on Wednesday it has acquired the upstream liquefied natural gas (LNG) interests of French power and gas utility Engie for around $1.5 billion, in a deal which is set to make it the world's second largest player in the LNG market, with a 10 percent share. Total said the portfolio includes liquefaction plants, notably Engie's interest in the Cameron LNG project in the United States, long-term LNG sales and purchase agreements, an LNG tanker fleet as well as access to regasification capacities in Europe.
Total's Chief Executive Patrick Pouyanne told reporters in a call that the acquisition would give it a share of the markets in Europe and Asia, where Engie had some long-term LNG contracts. "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 percent to 6 percent per year," he said.
The combination of the portfolios will allow Total to manage an overall volume of around 40 million tonnes of LNG per year by 2020, making it the second largest global player among oil majors with a worldwide market share of 10 percent, Pouyanne said, second behind rival Shell. Total currently has a market share of about 6 percent. "With the equity stake in the Cameron LNG project, Total will also become an integrated player in the US LNG market, where the group is already a gas producer," Pouyanne said.
The $1.5 billion value of the deal includes debts and liabilities which meant Total's final cash payment could be lower once the transaction is completed by mid-2018, he said. Under the agreement Total could make additional payments of up to $550 million if oil markets improve in the coming years. The companies confirmed in October that they were in talks over Engie's LNG business. Engie, which is in a midst of a strategic restructuring that includes 15 billion euros ($17.39 billion) of asset sales, said separately that the transaction completes its move to withdraw from oil and gas explration and production. It added that the deal will reduce the group's debt by 1.4 billion, not including the possible additional payments.

Comments

Comments are closed.