07/09/2026 by Daniel Tait
France-based TotalEnergies has now completed the transfer of its 10% stake in the Russian Arctic LNG (liquefied natural gas) 2 project to a subsidiary of operator Novatek, bringing a long-running process to a formal close.
TotalEnergies originally bought the 10% interest in Arctic LNG 2 in 2018, with a further indirect stake later being held through an interest in Novatek.
In March 2022, TotalEnergies, which also makes the Total metalworking and coolant products, said that due to sanctions, it would no longer book reserves from the project or provide capital to it, marking a clear change in its involvement.
Although sanctions complicate any payment arrangements, the company is reserving the right to be reimbursed at a later stage. In a press release, it said:
“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 billion. Such reimbursement might be implemented in the future subject to applicable sanctions.”
Patrick Pouyanné, the CEO of TotalEnergies, previously disclosed a potential transfer in a second quarter earnings call. On having been approached by Novatek about a transfer, Pouyanné said it would benefit both companies to do so. Impairments of roughly $4.1 billion have been previously recorded due to the project, reflecting the financial impact already recognised.
Despite ending its direct interest in Arctic LNG 2, Pouyanné also said the company still retains a 20% interest in Yamal LNG. He added that the project continued to generate cash flow, but distributions were irregular due to sanctions and wider operating restrictions.
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