Two French energy giants have reached an entente cordiale for a very significant $2bn LNG assets sale.
Engie, formerly known as GDF Suez, is selling is upstream and midstream LNG activities, liquefaction, shipping and international LNG trading, to Total for $2.04bn, including an earn-out of up to $550m, payable under certain conditions. The deal includes Engie’s Gazocean subsidiary.
Engie will keep its downstream activities, led by its regasification infrastructure, and LNG retail end-customer sales.
“This intended transaction demonstrates once again Engie’s ability to deliver on its transformation plan and to improve its risk profile by reducing its exposure to commodity prices. Total is the best placed to secure the future development of liquefaction, shipping and LNG trading employees and activities,” said Isabelle Kocher, Engie’s Chief Executive Officer.
Total’s ambition is to consolidate Engie’s upstream and midstream LNG activities with its own LNG business in order to become a global leader on the whole LNG chain.
The intended transaction could be completed in the course of 2018.
