TotalEnergies has confirmed the completion of transfer of its 10% interest in the Arctic LNG 2 project to Novatek’s subsidiary NordLine, with the company being therefore no longer a shareholder in the project, the company said in a statement.
“TotalEnergies confirms that the transfer of its 10% interest in Arctic LNG 2 to NordLine (a Novatek subsidiary) has been completed. TotalEnergies is therefore no longer a shareholder in Arctic LNG 2,” the statement reads.
As part of the transfer agreement, TotalEnergies retains its rights to be reimbursed by Arctic LNG 2 for its share of the loans provided by the shareholders to the project, for an amount of around $1.3 bln. “Such reimbursement might be implemented in the future subject to applicable sanctions,” the company noted.
Earlier, Russian President Vladimir Putin signed a decree authorizing NordLine LLC to acquire 10% in the Arctic LNG 2 project from TotalEnergies. NordLine is a subsidiary of Novatek established this May.
Arctic LNG 2 is the second large-scale project of Novatek for the production of liquefied natural gas after Yamal LNG. Novatek (60%), TotalEnergies (10%), China’s CNPC (10%) and CNOOC (10%), as well as Japan Arctic LNG (10%, of which 25% owned by Mitsui and 75% by JOGMEC) were participants of the project prior to the transaction. The project provides for the construction of three process trains of liquefied natural gas with the capacity of 6.6 mln tons per year.
