TotalEnergies it completed the transfer of its stake in Arctic LNG 2 to NordLine, a subsidiary of Novatek, although it retains rights over US$1.3 billion.
TotalEnergies ceased to be a direct shareholder of Arctic LNG 2 after completing the transfer of its 10% stake to NordLine, a subsidiary of the Russian energy company Novatek.
The French company confirmed the transaction after having hinted at the process during the presentation of its second quarter 2026 results. With the closing of the transfer, its direct involvement in one of Russia’s main liquefied natural gas projects comes to an end.
However, the share exit does not eliminate all of TotalEnergies’ financial ties with Arctic LNG 2, the company retains the right to recover approximately US$1.3 million corresponding to its share of the loans granted by shareholders to the project.
TotalEnergies retains rights to US$1.3 million
According to the terms of the transfer, Arctic LNG 2 could return those funds to TotalEnergies in the future. Any refund will be subject to applicable international sanctions.
In this way, the transaction separates the equity ownership from the financial rights associated with the previously obtained loans. The company exits the project’s capital while maintaining a potential avenue for recovering some of the invested funds.
The transfer had already been announced by the company during the presentation of the second quarter results. CEO Patrick Pouyanné explained that Novatek had proposed the acquisition of the stake and that the Russian authorities had approved the transaction in June. TotalEnergies had also previously recorded approximately US$4.1 million in impairments related to Arctic LNG 2.
An Arctic LNG 2 release initiated in 2022
TotalEnergies’ withdrawal from the project began several years before the transfer was finalized, in March 2022, following the outbreak of the war between Russia and Ukraine and the uncertainty stemming from sanctions, the French energy company announced it would cease contributing capital to the development. It also decided to stop accounting for the proven reserves associated with the project.
TotalEnergies had originally acquired a 10 % stake in Arctic LNG 2 in 2018, the project is located on the Gydan Peninsula in Western Siberia and was designed to achieve a production capacity of approximately 19.8 million tons of LNG per year.
Subsequently, Arctic LNG 2 reached its final investment decision in 2019, with Novatek acting as the operator of the development.
The company maintains other interests linked to Russian gas
The transfer to NordLine eliminates TotalEnergies’ direct ownership of Arctic LNG 2, but the company still retains other interests related to the Russian energy sector.
These include its stake in Novatek and its exposure to Yamal LNG, the latter project continuing to generate cash distributions even though sanctions have hampered financial transfers between Russia and Europe.
Pouyanné estimated during the July results presentation that TotalEnergies’ LNG trading business related to Russian supplies generates between US$300 million and US$400 million in annual cash flow.
Therefore, the transfer of 10 % of Arctic LNG 2 represents a concrete reduction in TotalEnergies’ direct exposure to the project. At the same time, the company retains outstanding financial rights and other ties with the Russian business liquefied natural gas.
TotalEnergies maintains its multi-energy strategy
TotalEnergies operates as an integrated multi-energy company with activities in oil, natural gas, biofuels, biogas, low-emission hydrogen, electricity and renewable energy.
The company operates in approximately 120 countries within the gas market, its activities encompass production, marketing and transportation of natural gas and LNG, a segment that continues to have weight within its global energy portfolio.
Source: Totalenergies
Photo: Shutterstock
