July 13, 2018 / 8:46 AM / a year ago

Total closes $1.5 billion deal for Engie's upstream LNG business

FILE PHOTO: The logo of French oil giant Total is seen on a flag at La Defense business and financial district in Courbevoie near Paris, France. May 16, 2018. REUTERS/Charles Platiau/File Photo

PARIS (Reuters) - French oil and gas major Total (TOTF.PA) said on Friday that it has completed a $1.5 billion (1.14 billion pounds) deal to acquire Engie’s ENGIE upstream Liquefied Natural Gas (LNG) business to become the second-largest player in the global LNG market.

Under the deal, Total said it would make additional payments of up to $550 million to Engie if there was an improvement in the oil markets in the coming year.

Total Chief Executive Patrick Pouyanne said in a statement that the deal will give the company a worldwide market share of 10 percent.

The deal will see the group manage an overall LNG portfolio of around 40 million tonnes per year by 2020 and increase its share in the U.S. market, with a 16.6 percent stake in Engie’s Cameron LNG project, he said.

Reporting by Bate Felix; editing by Richard Lough

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