Japan's Toshiba confirms exiting US LNG business

Source: Heren

2018/11/08

SINGAPORE (ICIS)--Japan’s Toshiba Corp on 8 November confirmed it will sell all of its holdings in Toshiba America LNG (TAL) Corp by the end of the first quarter of 2019, exiting from an agreement that included a 20-year use-or-pay deal with Freeport LNG (FLNG).

The company expects a loss of 93 billion yen ($821 million).

As part of the transfer, Toshiba Energy Systems and Solutions (ESS) Corp, which has an agreement with TAL to work with potential customers on LNG sales, will be released from its obligations to receive LNG from TAL.

Toshiba said ESS could have faced “the possible risk of future losses resulting from potential deterioration in market conditions or a situation where ESS has no choice but to sell LNG in worse than anticipated trading conditions.”

The company also announced in its “Toshiba Next Plan” on 8 November, detailing a five-year programme to restructure the Toshiba Group.