France’s Total will partner with Russia’s Novatek on Arctic LNG transshipment hubs

The company already owns a stake in Novatek, and in Novatek's Yamal and Arctic 2 LNG projects.

956

CEO of French oil and gas company Total S.A, Patrick Pouyanne said that the company would buy 10 percent share of LNG terminals of Novatek in Murmansk and in the Kamchatka region of Russia.

The statement came during a Thursday meeting in the Kremlin between Pouyanne and Russian President Vladimir Putin, during which Putin also said Russian business leaders were prepared to assist efforts to restore the fire-ravaged Notre-Dame cathedral.

“We have been invested in Arctic 2, not only in Arctic 2 but we also invest in terminals in Murmansk and Kamchatka,” Pouyanne said.

“It’s coming. It’s a part of the agreement we have with Novatek and to develop Arctic 2 we need to make two hubs — one in Murmansk, one in Kamchatka. And Total will be a partner of these two hubs as well.”

Total, which owns a 20 percent stake in Novatek’s Yamal LNG project, also received a 10 percent share in the Novatek’s project Arctic LNG 2 in March.

In addition to its direct shares in those projects, Total also owns a 19.4 percent stake in Novatek.

The Arctic LNG Project 2 provides the production of liquefied natural gas (LNG) with a capacity of 6.6 million tons per year each. In addition to Total, Novatek has also courted Japanese and Saudi companies as investors in the project. Last month Saudi Aramco was said to be close to a deal with Novatek.

Earlier this month, at the International Arctic Forum in St. Petersburg, Putin invited foreign investors to help construct the Northern Sea Route transshipment hubs.