French Total reported on November 8, 2017, that it was acquiring the upstream LNG assets of rival Engie for $1.49 billion, a move that Total said will propel it to the 2nd world ranking for LNG production.
The deal would boost Total's volumes to around 40 million mt/year of LNG by 2020, «making Total the 2nd-largest global player among the majors with a worldwide market share of 10%,» said Patrick Pouyanne, the company's CEO.
A statement from the French company said that the acquisition would notably include the Cameron LNG project in the US and a number of long-term contracts belonging to Engie.
A stake in the Cameron project would make Total an integrated player in the US LNG market, where the group was already a gas producer, Pouyanne said.
The company also noted that it had agreed a supplementary payment to Engie of up to $550 million if market prices for LNG rise significantly in the coming period.
The deal accelerated Total's strategy to integrate along the full gas value chain «in an LNG market growing at 5% to 6% per year,» it said.
The deal must now get official approval but has an effective date of January 1, 2018.
Following the transaction, Total will take over the teams in charge of the LNG activities at Engie, which represents around 180 employees.
