Total launches into the US LNG market of Toshiba after the withdrawal of a Chinese buyer By Reuters

By Bate Felix and Makiko Yamazaki

PARIS / TOKYO (Reuters) – Total will take control of liquefied US activity at Toshiba and will get $ 800 million from the Japanese group under the deal, announced Saturday the weeks after the attempt of sale to a Chinese buyer.

The French energy group has paid $ 15 million to acquire the shares of the Texas badets, announced the two companies. Toshiba will also pay Total $ 815 million to take over all business-related contracts, added Total.

The Japanese group previously said that its US LNG operations could cause losses of up to 1,000 trillion yen ($ 9 billion).

Toshiba has been forced to pay Freeport LNG a fixed 20-year LNG treatment fee, whether or not it is able to find fuel buyers at prevailing rates in the future.

For Total, this deal comes as efforts were being made to expand its LNG portfolio. It follows the $ 8.8 billion deal it proposed in May to acquire Anadarko's African badets, including an LNG project in Mozambique.

"The takeover of Toshiba's LNG portfolio is part of Total's strategy to become a major player in the LNG portfolio," the French group said in a statement.

He added that the purchase would add 2.2 million tonnes per year (Mtpa) of LNG to its US operations, which "would optimize the supply and activities of these LNG sources".

Toshiba has announced its intention to finalize the transaction by the end of March of the current fiscal year, after regulatory approval, and to recognize a loss of 93 billion yen ($ 859 million) related to the transaction.

The Chinese company ENN Ecological Holdings Co accepted the company's purchase last year, but canceled the deal in April, citing the impossibility of obtaining shareholder approvals and a US committee overseeing foreign investment.

Analysts said the recent drop in spot LNG prices made the deal unattractive.