Toshiba Corp., already reeling from a crisis over its nuclear business that has sent its market value down by almost half, is seeking help from one of the world's biggest buyers of liquefied natural gas to avoid billions of dollars in potential losses if it can't sell American gas it holds.
Toshiba is working with Japan's Jera Co. to help it find buyers for gas that it has a contract to liquefy in the U.S. starting in 2019, said company spokesman Hirokazu Tsukimoto by phone. Since Toshiba hasn't yet secured long-term contracts, it may be forced to sell the LNG in spot markets at a loss, or opt not to process gas at Freeport LNG Development LP's plant in Texas, Tsukimoto said. Either way, it will pay a fixed tolling fee.
The potential for having unsold gas is another blow to Toshiba, which is already facing billions of dollars in losses at its nuclear business following a profit-padding scandal in 2015. The Japanese conglomerate said in a June filing it could face potential losses of ¥971.4 billion at its power and infrastructure division, which the spokesman said is mostly due to its LNG contract in the U.S.
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