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

EIG hires Shell’s Venter as CEO of its LNG unit

US-based energy investor EIG said it has named Shell's De la Rey Venter as chief executive officer of its...

Souki says Tellurian invested $750 million in Driftwood LNG

US LNG firm Tellurian has already invested $750 million in its Driftwood project in Louisiana, as it continues to...

Czech firm books capacity at Dutch Eemshaven LNG import hub

The Czech Republic, in cooperation with CEZ Group, has booked regasification capacity at Gasunie's LNG import hub in Eemshaven,...

More News Like This

Kogas, TotalEnergies strenghten LNG ties

South Korean LNG importing giant Kogas said it has signed a deal with France's TotalEnergies to boost liquefied natural...

TotalEnergies takes stake in giant Qatari LNG expansion project

France's TotalEnergies said it had secured a stake in QatarEnergy's giant LNG expansion project which will boost Qatar's LNG...

TotalEnergies inks long-term LNG supply deal with South Korea’s Hanwha Energy

France’s TotalEnergies said it has signed a long-term deal to supply liquefied natural gas (LNG) to South Korea's Hanwha...

TotalEnergies’ Q1 profit, LNG sales up

France’s TotalEnergies said Thursday its first-quarter earnings rose on the back of higher oil and gas prices, while the...