World · Malaysia Bureau
TotalEnergies divests Arctic LNG 2 stake amid Russia sanctions
French energy major TotalEnergies has confirmed the transfer of its 10% stake in the Arctic LNG 2 project to NordLine, a subsidiary of Russian gas producer Novatek. The move marks the company's exit from the sanctioned Russian Arctic liquefied natural gas venture.
LSN Malaysia ·
TotalEnergies has formally completed the transfer of its minority stake in Arctic LNG 2 to NordLine, a subsidiary of state-controlled Novatek, the project's primary operator. The French multinational's 10% holding in the facility represents a significant withdrawal from Russian energy operations in the Arctic region.
The Arctic LNG 2 project, located on Russia's Yamal Peninsula, has faced mounting international sanctions following geopolitical tensions. The facility was designed to produce liquefied natural gas for global export markets, with capacity to generate approximately 20 million tonnes annually.
TotalEnergies' departure from the venture underscores the growing pressure on Western energy companies to reduce exposure to sanctioned Russian assets. The divestment reflects broader industry shifts as European and North American firms reassess their involvement in Russian energy infrastructure.
The transfer to NordLine, wholly owned by Novatek, enables the Russian company to consolidate control over the Arctic LNG 2 project. The development carries significant implications for global energy markets and Europe's efforts to diversify away from Russian gas supplies. TotalEnergies has not disclosed financial details of the transaction.