Total announced that it purchased a 5% stake in the first train of the liquefied natural gas (LNG) project in Idku, Egypt Oil & Gas reports.
The French oil major acquired the stake from another French energy company, Engie.
The first train has an annual operational capacity of 3.6 million tons, according to the Ministry of Petroleum.
Production from the Idku LNG plant has stalled due to Egypt’s natural gas shortage.
The purchasing agreement is part of a larger deal between the two firms. Total purchased Engie’s upstream LNG assets for $1.49 billion, according to the company’s press release.
Besides the stake in the Idku facilities, Total acquired sales and purchase agreements, an LNG tanker fleet, stakes in other liquefaction plants, and regasification capacity in Europe, according to Total.
The agreement is still pending governmental and contractual reviews. Total expects the agreement to be finalized in mid-2018 with an effective date of January 1st, 2018.
Total has been increasing its investments in the natural gas sector. This summer, Total signed an agreement with Iran to acquire a 50.1% stake in stage 11 of the development of the South Pars natural gas field, Reuters reported in July.