TotalEnergies to exit Arctic LNG 2 plant in Russia, CEO says
TTE•TotalEnergies to transfer its Arctic LNG 2 stake
PARIS, July 23 - French oil major TotalEnergies TTEF.PA will exit its stake in the Arctic LNG 2 plant in Russia, CEO Patrick Pouyanne said on Thursday.
The transfer of Total's 10% stake to Nordline, a subsidiary of the plant's majority owner Novatek, has been approved by Russian authorities and will be completed in the short term, he told analysts on a second-quarter results call.
Sanctions and prior impairments shaped the decision
Following Western sanctions on Russia in the wake of the invasion of Ukraine, Total maintained ownership in key Russian plants exporting LNG — but has considered selling the stakes after European Union sanctions will ban companies from importing that gas in 2027 or selling it in other jurisdictions.
"Soon after Arctic LNG 2 became subject to U.S. sanctions in November 2023, Novatek approached us about a potential transfer," Pouyanne said.
Noting that Total had already taken a $4.1 billion impairment on the project in 2022 and declared force majeure the following year, Pouyanne said he considered the proposal to be in the company's interest.
The CEO did not use the word 'sale'. A press officer for TotalEnergies did not immediately respond to a request on whether Total expected to be compensated for its stake and at what valuation.
Russian energy assets have changed hands since the war began
In the wake of the war many foreign firms have sold Russian assets or seen them seized.
In 2024, Kremlin-controlled energy giant Gazprom acquired a 27.5% stake in Russian LNG project Sakhalin II by decree, previously held by British oil major BP, which took a $1.6 billion impairment.
