TotalEnergies Exits Arctic LNG 2 Project Amid US Sanctions

French energy major TotalEnergies has exited Russia's Arctic LNG 2 project after completing the transfer of its 10% stake to NordLine, a subsidiary of Russian gas producer Novatek. This move comes following US sanctions on the liquefied natural gas (LNG) project since November 2023.

TotalEnergies retains the potential for reimbursement of about $1.3 billion in shareholder loans provided to the project. However, this reimbursement is subject to applicable sanctions and may not occur immediately.

The Arctic LNG 2 project is led by Novatek, which currently holds a 70% stake in the project. Other stakeholders include China's CNPC and CNOOC, as well as the Japan Arctic LNG consortium, each holding 10% stakes.