TotalEnergies exits Arctic LNG 2, seeks $1.3B loan return
French TotalEnergies has completed the transfer of its 10% stake in the sanctioned 'Arctic LNG 2' project to 'NordLine', a subsidiary of 'Novatek', and expects to receive approximately $1.3 billion — this represents its share of the loans issued to the project by its shareholders, according to the company's statement.
Consensus
- TotalEnergies has completed the transfer of its10% stake in Arctic LNG 2 to NordLine.
- NordLine is a wholly owned subsidiary of Novatek.
- TotalEnergies is no longer an owner of Arctic LNG 2.
- TotalEnergies retains the right to recover its share of loans made to the project, amounting to approximately $1.3 billion.
- The repayment of the loan is contingent on future sanctions developments.
- The transfer was approved by Russian President Vladimir Putin in early June.
Points of divergence
- TotalEnergies previously paid around $2.55 billion for its stake in 2019 and wrote off $4.1 billion in April 2022. — thebell
- The project was sanctioned by the US in November 2023 and began regular shipments via shadow fleet to China only from autumn 2025. — thebell
- As of late 2024, two operating lines were running at about 50% capacity, producing around 6.6 million tons per year against a planned 19.8 million. — thebell
- TotalEnergies still holds 20% in Yamal LNG and 19.4% in Novatek. — thebell
- The deal was permitted under Article 5 of Presidential Decree No. 520 dated August 5, 2022. — vedomosti
- The company that purchased the stake was not identified in the official document, only by name. — interfax
- Novatek created NordLine as a 100% subsidiary in May of this year. — interfax
Coverage (4 sources)
- Total exits «Arctic LNG-2» and calculates to return $1.3 billion — The Bell
- TotalEnergies completed exit from «Arctic LNG 2» project — Ведомости
- French TotalEnergies exits Arctic LNG 2 project — Вести
- TotalEnergies completed transfer of 10% of "Arctic LNG 2" to subsidiary of "NOVATEK" — Интерфакс