Total to supply 0.4 million tons of LNG to Chugoku Electric

Total to supply 0.4 million tons of LNG to Chugoku Electric

World Oil – Total has signed a binding Heads of Agreement with Chugoku Electric for the direct supply of LNG for a period of 17 years starting from 2019. Under the agreement, Total will supply Chugoku Electric with up to 0.4 million tons of LNG per year from the company’s global portfolio.

“This supply agreement with one of Japan’s major regional electric utilities is an important milestone for Total in the country where the Group has been a reliable partner in supplying LNG for almost 40 years,” Laurent Vivier, president of gas at Total, said. “Strengthening our presence in Japan, the world’s largest LNG importer, through long-term cooperation with leading LNG buyers, such as Chugoku Electric, is a key component of Total’s strategy.”

Related News: Total to sell its $3.4 billion worth Chemical Section

French oil and gas producer Total has begun preparations for the sale of its speciality chemicals and equipment division Atotech, which may be valued at about 3 billion euros ($3.4 billion), sources said.

Total said in February it was planning sales of mostly non-core assets worth about $4 billion this year and Chief Executive Patrick Pouyanne said last month that Atotech no longer fell within the company’s strategic vision.

The chemicals sector has seen a surge of mergers and acquisitions in the last year, with a tie-up between U.S. peers Dow and DuPont and ChemChina buying Swiss pesticides group Syngenta.

The deal bonanza is driven by large corporates striving to bulk up in higher-margin speciality chemicals and rely less on commodity chemicals. At the same time, they are trying to focus on key areas and divest sub-scale activities, while the cheap funding has facilitated deal-making.

Total is expected to ask Barclays to lead the divestment, the sources said, adding that a final mandate has not yet been assigned but was imminent.

An auction of Berlin-based Atotech, which generates annual sales of about $1 billion from the manufacture of speciality chemicals and equipment for printed circuit boards and semiconductors, would likely to kick off after the summer, the sources said, after sales documents had been prepared.

 

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