Total buys EDP’s Spanish assets

French energy company and LNG player Total has agreed to buy some power and gas assets in Spain from EDP.

The deal includes 2.5 million B2C customers and two gas-fired combined cycle power plants.

These plants represent an electricity generation capacity of nearly 850 megawatts, Total said on Monday.

Portugal’s EDP will also transfer to Total the 280 employees managing the acquired assests.

The transaction is based on an enterprise value of 515 million euros ($557.4m), according to Total.

This deal follows Total’s entry into Spain’s solar market in February with the acquisition of a portfolio of almost 2 gigawatts of renewable power projects.

It allows the group to implement its growth strategy in the country’s integrated gas and electricity value chain.

The deal will make Total the 4th largest supplier of gas and power in Spain. The company’s residential market share will rise to 12 percent and 6 percent, respectively.

Total enlarging portfolio

Total’s chief Patrick Pouyanné said this was a major step in the company’s ambition to become a broad energy player.

“This transaction enables Total to become one of the key players in the energy market in Spain, covering a wide spectrum from LNG imports to power generation from renewables and gas, as well as gas and electricity supply,” Pouyanné said.

Pouyanné sees this transaction as fully consistent with the group’s strategy of profitable growth across the gas and low carbon electricity value chain in Europe.

The deal is also in line with Total’s emission goals as it aims to reach net zero emission by 2050.

“With this deal Total will reach 8.5 million gas and power customers in Europe from 2021, on track with its ambition to serve over 10 million customers by 2025,” Pouyanné said.

Total expects to complete the transaction before the end of 2020.

Most Popular

Baker Hughes to buy Chart in $13.6 billion deal

US energy services firm Baker Hughes has entered into a definitive deal to buy compatriot LNG equipment maker Chart Industries. The transaction is worth $13.6 billion.

Venture Global takes FID on CP2 LNG

US LNG exporter Venture Global LNG has taken a final investment decision (FID) on the first phase of its CP2 LNG project in Louisiana. The company also closed the $15.1 billion project financing, claiming that it represents the largest standalone project financing ever, and the second-largest project financing after the combined financings of Venture Global’s Plaquemines LNG.

Worley gets full notice to proceed on first phase of CP2 LNG project

Australian engineering firm Worley has received a full notice to proceed from US LNG exporter Venture Global LNG under its reimbursable EPC contract for the first phase of the CP2 LNG project in Louisiana.

More News Like This

TotalEnergies working on Mozambique LNG restart, CEO says

France's TotalEnergies and its partners in the giant Mozambique LNG project are still working with the Mozambique government on restarting construction on the 12.8 mtpa project, according to Patrick Pouyanne, CEO of TotalEnergies.

TotalEnergies reports higher LNG sales, lower earnings

French energy giant TotalEnergies reported higher LNG sales in the second quarter of this year, while its integrated LNG business logged lower adjusted net operating income due to lower prices.

TotalEnergies, CMA CGM to launch LNG bunkering JV

French energy giant TotalEnergies and compatriot shipping firm CMA CGM have signed a deal to develop a 50/50 logistics joint venture dedicated to the implementation and operation of an LNG bunkering supply solution at the Dutch port of Rotterdam.

TotalEnergies: average LNG price down in Q2

French energy giant TotalEnergies, one of the world’s largest LNG players, reported a year-on-year drop in its average price for equity liquefied natural gas sales in the second quarter of this year.