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.

- Advertisements -

Most Popular

VesselsValue: Japan has the world’s most valuable LNG fleet

Japan owns the world’s most valuable fleet of liquefied natural gas (LNG) carriers, followed by Greece and South Korea,...

Four firms plan to liquefy e-methane at Cameron LNG and ship it to Japan

Japan's Tokyo Gas, Osaka Gas, Toho Gas, and Mitsubishi have revealed plans to produce synthetic methane or e-methane in...

LNG freight rates drop below $300,000 per day

Spot charter rates for the global LNG carrier fleet are continuing to decline in both basins and now they...

More News Like This

TotalEnergies opens new LNG fueling station in Germany

A unit of French energy giant TotalEnergies has opened a new LNG fueling station for trucks in Germany. TotalEnergies Germany...

TotalEnergies says LNG boosts Q3 profit to about $9.9 billion

France’s TotalEnergies said on Thursday its third-quarter earnings more than doubled to about $9.9 billion, boosted by higher LNG...

MOL seals LNG carrier charter deal with TotalEnergies

Japan’s shipping firm MOL has signed a deal to charter one newbuild LNG carrier to a unit of French...

TotalEnergies: average LNG price jumps in Q3

France-based TotalEnergies, one of the world's largest LNG players, reported a jump in its average price for equity liquefied...