TOKYO—The transfer of Toshiba Corp.’s U.S. LNG business to China’s ENN Ecological Holdings Co. has been delayed because a U.S. panel that monitors foreign investments has not yet approved the deal.
Toshiba in November agreed to pay ENN more than $800 million to take over its LNG business in the United States as part of a plan to shed money-losing assets.
Approval by the Committee on Foreign Investment in the United States (CFIUS) has been delayed because of the U.S. government shutdown earlier this year, a Toshiba spokesman said on April 4.
He said he was not aware the holdup was due to any issues from the investment.
The committee has blocked or delayed investments from China in the past due to concerns about security or transfers of U.S. technology.
Toshiba said earlier it expects to complete the transfer this month or “shortly thereafter.”
Exiting the U.S. LNG business was the disappointing culmination of a venture that puzzled analysts when it was announced in 2013.
Asian LNG prices have plunged since then and the potential for future losses spurred Toshiba’s exit.
Under the deal, Toshiba will sell its Toshiba America LNG Corp unit to ENN Ecological, a unit of ENN Group, for $15 million, the Japanese company said in November.
However, once that sale is complete, Toshiba will then make a one-off payment of $821 million to ENN to pass on its roughly $7 billion commitment, starting in 2020, to purchase 2.2 million tonnes per year of LNG over 20 years from Freeport LNG in Texas.
Recommended Reading
Inside Ineos’ US E&P Business Plan: Buy, Build, Buy
2025-01-27 - The E&P chief of U.K.’s Ineos says its oily Eagle Ford Shale acquisition in 2023 has been a profitable platform entry for its new U.S. upstream business unit. And it wants more.
E&P Highlights: Feb. 24, 2025
2025-02-24 - Here’s a roundup of the latest E&P headlines, from a sale of assets in the Gulf of Mexico to new production in the Bohai Sea.
PE Firm Voyager to Merge Haynesville OFS Firm with Permian’s Tejas
2025-03-17 - Private equity firm Voyager Interests’ Haynesville Shale portfolio company VooDoo Energy Services will merge with Tejas Completion Services as part of a transaction backing Tejas, Voyager said.
BKV Positions Itself to Meet Growing Power, CCS Demand
2025-02-26 - Electricity needs across the U.S. are expected to soar as industrial and manufacturing facilities, data centers and other consumers crave more power. BKV is exploring ways to bridge the gap between demand and energy supply.
Sitio Fights for its Place Atop the M&R Sector
2025-04-02 - The minerals and royalties space is primed for massive growth and consolidation with Sitio aiming for the front of the pack.