BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry

« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa

BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News

Engie 'committed' to downstream activities

French firm says retail sales, GTT and regasification terminals are 'core to its strategy'.

Image credit:

Updated on 09 Nov 2017 09:08 GMT

Engie says it "will remain committed" to its downstream business following the sale of its upstream and midstream LNG activities, liquefaction, shipping and international LNG trading businesses to Total, which was confirmed on Wednesday.

The aggregate value of the deal is $2.04 billion, whilst additional payments of up to $550 million could also be payable by Total if there is an improvement in the oil markets over the coming years.

The agreement signed with Total includes participating interests in liquefaction plants - notably the interest in the Cameron LNG project in the US - long-term LNG sales and purchase agreements, a fleet of 10 LNG tanks as well as access to regasification capacities in Europe.

Engie will keep its downstream activities, which covers regasification infrastructure and LNG retail end-customer sales.

The transaction is expected to translate into a $1.4 billion reduction in Engie's consolidated net financial debt, excluding earn-out.

"The intended transaction is in line with Engie's strategy to reduce its exposure to commodity prices. It also completes the group's action plan to move away from upstream oil and gas activities following the announcement of the sale of Engie Exploration & Production International in May of this year," Engie explained in a statement.

"Engie will remain committed to its downstream activities which are core to its strategy, notably its retail sales, its GTT subsidiary and the group's regasification terminals in France, the United States and Chile," the French firm said.

In parallel with the agreement, Engie announced that it will be "accelerating its development in downstream gas activities" with the creation of a new entity responsible for the development of renewable hydrogen, which the company believes "is set to become increasingly important for the energy revolution".

Engie has also reached an accord with Total for an initial 10-year period that will see both firms cooperate on the promotion of the use of biogas and renewable hydrogen and Engie become Total's preferred supplier for all new projects related to renewable hydrogen and biogas supply.

Engie is part-owner of LNG bunker supplier Gas4Sea together with partners Mitsubishi Corporation and NYK Line. The company's delivery asset, the Engie Zeebrugge, is the world's first purpose-built LNG bunkering vessel. Following its arrival in Antwerp earlier this year, the ship now performs regular ship-to-ship bunker deliveries.

In May, Engie also agreed to enter into a joint venture with AES Corporation to market and sell LNG to third parties in Central America and to provide bunkering services.

Engie is also part-owner of Gaztransport & Technigaz (GTT) - an engineering company specialised in the design of membrane containment systems for the transportation and storage of liquefied gases.

Related Links:

Engie: Downstream LNG activities not part of strategic review
Statoil selects Gas4Sea to supply LNG bunkers in Rotterdam
Gas4Sea vessel starts weekly supply of LNG bunkers to two PCTCs
World's first purpose-built LNG bunkering vessel arrives at home port
Engie and CMA CGM sign LNG bunkering research agreement

Latest News:

IMO launches toolkits to tackle ship and port emissions
Bunker-saving JIT study presented at IMO HQ
Working group to finalize Initial Strategy programme for MEPC 73
Oil and fuel oil hedging market update
Bunker issues pack MEPC 73 agenda
Volatility around $80
Arkas and Sumitomo ink Turkey LNG bunkering accord
MEPC 73: Coalition calls for 'urgency' to adopt CO2 reduction measures
Concept ship shows IMO CO2 reduction targets can be met: Project Forward
Oil and fuel oil hedging market update
Tallink signs LOI to build second LNG-fuelled ferry
Will Saudi Arabia be able to replace Iranian oil?

Page Links:

Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Las Palmas
New Orleans
Rio de Janeiro
Latest News
Middle East
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Fuel Quality
Lubes & Additives
Oil Spills
Port News
Services, Products, Technology
Statistics & Research
Contact & Terms
Contact Us
Terms & Conditions
Privacy Policy
Upcoming Events