Japanese conglomerate Toshiba Corporation has decided to withdraw from the US LNG business transferring all the outstanding shares of Toshiba America LNG Corporation to a third-party buyer.
While the buyer will pay $15 million for the transfer, under the arrangement, Toshiba, through its unit Toshiba Energy Systems & Solutions Corporation, will pay 93 billion Japanese yen ($821 million) to the buyer, the company said in its statement on Thursday.
Under the transfer agreement, all contracts related to the sale of U.S. LNG entered into by the Toshiba Group, including those between Toshiba and customers will either be transferred or canceled.
The transfer finalization is scheduled for March 2019, marking complete withdrawal from the LNG business.
Toshiba further noted the name of the third-party buyer will be unveiled as soon as the contract is completed.
The Japanese conglomerate decided to part with its U.S. LNG assets following the inability to find buyers for the 2.2 million tons of LNG booked at the Freeport LNG terminal in Texas, under a 20-year deal.
Toshiba has already booked an $818 million charge for exiting the LNG business and said the move is to avoid further losses.