French energy major TotalEnergies has completed the transfer of its 10% stake in Russia’s Arctic LNG 2 project to NordLine, a wholly owned subsidiary of Russian gas producer Novatek, ending its direct shareholding in the venture, according to TotalEnergies.
The French group retains the right to recover around $1.3bn from Arctic LNG 2 for its share of loans provided by the project’s shareholders. Any repayment would be subject to applicable sanctions. No transaction value was disclosed.
NordLine acquired the holding from TotalEnergies EP Salmanov after receiving approval for the transaction in June. Novatek held 60% of Arctic LNG 2 before the transfer.
TotalEnergies had fully impaired its investment in Arctic LNG 2 in 2022, taking a $4.1bn charge mainly related to the project.
The company later suspended its contractual rights and obligations associated with the venture.
Arctic LNG 2 is based on the Utrenneye field on Russia’s Gydan Peninsula. The project was designed with three liquefaction trains of 6.6m tonnes per annum each, giving it total nameplate LNG capacity of 19.8m tonnes per annum.
The transaction does not represent a complete withdrawal by TotalEnergies from Russian LNG interests. The group has retained about 20% of Yamal LNG, 19.4% of Novatek and, in its latest annual filing, a 10% interest in Arctic Transshipment.
TotalEnergies SE is a French integrated energy company producing and marketing oil, natural gas, LNG, biofuels, renewables and electricity.
Novatek is a Russian public joint stock company engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. NordLine is a wholly owned Novatek subsidiary.
Arctic Transshipment was established to support LNG transshipment operations connected with Arctic projects.