Total takes on Toshiba's U.S. LNG business
Total will take over Toshiba’s U.S. liquefied natural gas business and get $800 million cash from the Japanese group as part of the deal, the companies said, weeks after attempts to sell it to a Chinese buyer fell through.
The French energy major is paying $15 million for the shares in the Texan assets, the firms said. Toshiba will also pay Total $815 million to take over all the contracts linked to the business, Total added.
The Japanese group had previously said that its U.S. LNG operations may cause it losses of as much as 1 trillion yen ($9 billion).
Toshiba was locked into a contract to pay a fixed processing fee for LNG over 20 years from Freeport LNG - regardless of whether it could later find buyers for the fuel at prevailing rates.
For Total, the deal comes amid a big push to expand its LNG portfolio, and follows its proposed $8.8-billion deal in May to acquire Anadarko’s Africa assets, which include an LNG project in Mozambique.
“The takeover of Toshiba’s LNG portfolio is in line with Total’s strategy to become a major LNG portfolio player,” the French company said in a statement.
It added that the purchase would add 2.2 million tonnes per annum (Mtpa) of LNG to its U.S. business, which would “enable optimizations of the supply and operations of these LNG sources.”
Toshiba said it expected to complete the transaction by the March-end of the current financial year, following regulatory approval, and to book a 93 billion yen ($859 million) loss related to the deal.
China’s ENN Ecological Holdings Co last year agreed to buy the business, but scrapped the pact in April citing a failure to get approvals from shareholders and a U.S. panel that monitors foreign investments.
At the time analysts said a recent plunge in spot LNG prices had made the deal unattractive. ($1=108.2600 yen) (Reporting by Bate Felix in Paris and Makiko Yamazaki in Tokyo, Writing by Sarah White; Editing by Jane Merriman, Clarence Fernandez, Editing by William Maclean)
Best Practices in Supporting Front Line HPI Operations Remotely in Response to Covid-19
To ensure employee safety, HPI companies had to quickly pivot to a remote support model with many subject matter experts (SMEs) and engineering staff working remotely supporting front line, sequestered critical operations and field operators.
What are the best practices and lessons learned from this new remote operational support model? What have been technologies and work processes that are enabling effective and efficient remote operational support? Is this the “new norm” going forward even when the impact of Covid-19 abates? If not, how will remote support of critical operations be changed?
If this topic and questions are of interest to you and your organization, please attend this special HPI webinar with a panel of leading industry customer experts who will discuss their perspectives. Attendees will have the opportunity to ask questions for the panelists.
May 18, 2020 10:00 AM CDT