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Toshiba To Pay $815 Million To France’s Total SA To Exit Freeport LNG Plant

Toshiba announced it will pay a total of USD 815 million to French company Total SA for processing Natural Gas at the Freeport LNG project in Texas. As per the statement made by Toshiba on Saturday, Toshiba will transfer its rights and handover the 20-year liquefaction rights to Total SA. They are expecting to round off the deal by March 2020. Total will also make a $15 million payment to Toshiba and will assume Toshiba’s tolling charge commitments.

Toshiba had been looking to sell the Freeport LNG liquefaction rights as it was bound to pay fixed amounts and faced losses worth billions when the contract starts in 2020. An earlier deal with ENN Group was scrapped in April as it failed to get approval Toshiba’s board. Total SA has a lot to ponder over this deal as it sets aim to become the world leaders in LNG sectors. This deal is a part of a sequence of acquisitions made by Total SA. It agreed for Engie’s SA upstream assets in a sea worth USD 1.5 billion in 2017. Toshiba, on the other hand, have decided to move out entirely from the LNG business. By finalizing the Freeport LNG deal, Toshiba is expecting a USD 859 million writedown.

Toshiba recently had suspended shipments of its electronic devices to Huawei as it thought it might be breaching the US sanctions. However, after checking whether or not the shipments to Huawei had any American involvement, the company pulled back the suspension on that same evening and went ahead with regular business with the Chinese giants. Toshiba was into the development of an internet-of-things project with Huawei since 2017, but that too ended in March this year. The suspension of shipments came after America had blacklisted Huawei as part of a trade war between US and China.

David Lamy
David Lamy Author

David Lamy owns the Bachelor in Atmospheric Science Degree. He is associated with Industry News USA from last 2 years. With proficiency in his work, David obtained a strong position at Industry News USA and heads the Science section. “Weather forecasting” is the field of his interest. He bags total 5 years of experience in this field. Apart from his routine work, David loves to explore his cooking skills. He has participated in various cookery shows.

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