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EDF and Total into exclusive sales negotiations for Dunkerque LNG
June 29, 2018
Following a competitive auction process launched early 2018 by EDF, EDF and Total announce they have entered into exclusive negotiations with two groups of investors for the disposal of their 75% interest in the share capital of Dunkerque LNG, owner and operator of the LNG terminal of Dunkirk.
EDF currently owns 65.01%, Total owns 9.99% while Fluxys owns 25% of Dunkerque LNG.
Fluxys with consortium partners AXA Investment Managers – Real Assets, acting on behalf of its clients, and Crédit Agricole Assurances have agreed to jointly acquire from EDF and Total a 35.76% stake. EDF and Total also agreed to sell the remaining 39.24% stake to a consortium of Korean investors led by IMP Group.
Upon completion of the transaction Fluxys and its consortium partners will have a 60.76% stake in the facility. With Fluxys already holding 25% in the facility, the company through the consortium will have ~ 30.39% in the capital of the terminal while AXA Investment Managers – Real Assets, on behalf of its clients, and Crédit Agricole Assurances each will hold ~15.19%. Closing of the acquisition process is expected in the autumn. Fluxys’ share in Gaz-Opale, the company operating the Dunkirk LNG terminal, stays unchanged at 49%, the remaining 51% being held by Dunkerque LNG.
Commissioned in January 2017, Dunkirk LNG is one of Continental Europe’s largest liquefied natural gas terminals. With an annual regasification capacity of 13 billion cbm and storage capacity of 600,000 cbm, Dunkirk LNG can meet 20% of France and Belgium’s gas demand. The terminal also benefits from flexible access to the UK, and other North-western European countries.
The Dunkirk LNG terminal’s business is underpinned by long-term earnings with about 75% of the terminal’s capacity contracted with EDF and Total under 20-year contracts until 2036. The remaining c. 25% of terminal capacity is available for marketing to serve both the Northwest European market as declining production requires additional supply and the growing demand for transshipment capacity.
Edited from EDF, Fluxys and Total press releases.