French energy company Engie has said it has launched a strategic review of its upstream and midstream LNG activities.
The company confirmed this on Monday, following press speculation that it is in talks to sell its LNG business to its rival and compatriot, Total.
Engie, formerly known as GDF Suez, on Monday confirmed it had launched a strategic review of its activities, but said that downstream LNG activities, such as regasification and LNG ex-terminal sales, are not part of the review.
“At this stage, there can be no certainty as to whether the discussions with the counterparties, including Total, will lead to any agreement. Any agreement would have to be approved by the relevant governance bodies and the relevant employee representative bodies would have to be consulted,” Engie said.
To remind, Engie in May this year received a takeover offer from Neptune for its oil and gas exploration and production business.
Neptune, an investment firm established in 2015 by an ex-Centrica boss Sam Laidlaw, offered to buy Engie’s 70% interest in Exploration & Production International (“EPI”) for an aggregate value of €4.7 billion (at 100%, including €1.1 billion in decommissioning liabilities deconsolidated from ENGIE’s balance sheet).
Based on the offer, Engie in May entered into exclusive negotiations with Neptune Energy. The completion of the transaction for the E&P business is expected in the first quarter of 2018.