ENN to Buy Toshiba Out in LNG

ENN Ecological Holdings (600803.SH) disclosed important asset purchase plan at the night of November 8th, saying that ENN Ecological Holdings is going to purchase Toshiba’s LNG business. ENN Ecological Holdings is going to specify its overseas subsidiary to purchase TAL’s 100% stake which is held by Toshiba’s U.S.A. subsidiary TAI, and is going to inherit the rights and obligations on the LNG contracts signed by Toshiba’s Japan subsidiary TESS. TESS will pay $821 million to ENN Ecological Holdings’ overseas subsidiary. If the transaction is completed, ENN Ecological Holdings will undertake the 115,000 tn Btu/a (roughly 2.21 mn mt/a) contract which was signed between TAL and Freeport Project. Through the transaction, ENN could gain cheap LNG resources and achieve leapfrog development in the field of natural gas.

The Freeport Project locates in the Mexican Gulf, U.S.A. The project has 3 tolling production line with a capacity of 150 million mt/a, and this makes the project to be the 7th largest LNG project in the world. The Line 1 supplies LNG to JERA and Osaka Gas, the Line 2 supplies BP and the Line 3, which is predicted to be put into operation in H2, 2020, supplies SK Group from South Korea and Toshiba (and now they might be SK and ENN).