Toshiba Transfers LNG Business to Total
Toshiba has wrapped up the sale of its US LNG business to France’s Total, the Japanese multinational reported on September 2.
Total’s Singaporean subsidiary Total Gas & Power Asia Private has taken control of Toshiba America LNG (TAL), Toshiba said in a statement. Any LNG-related contracts involving Toshiba will be transferred to Total or cancelled, it said. Total will also guarantee TAL’s obligations under a 20-year liquefaction tolling agreement for 2.2mn mt/year of LNG from the third train of the Freeport LNG plant in Texas.
Toshiba received $15mn for its business, but paid Total $815mn for assuming responsibility of its contracts. It will book an overall loss of yen 89.3bn ($840mn) on the deal in the fiscal year ending March 2020.
Toshiba first announced the transaction in June. Its decision to divest from LNG supply came after a drop in LNG prices meant its plan to ship US LNG to Japanese utilities was no longer feasible. The Tokyo-based conglomerate has been struggling financially since being rocked by an accounting fraud scandal in 2015 and the bankruptcy of its US nuclear construction business Westinghouse Electric in 2017.