France’s Energy Company Total Joins $25 billion Russian Arctic LNG Project

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France's Energy Company Total Joins $25 billion Russian Arctic LNG Project

Illustrative image: Novatek

France’s energy company Total will buy a 10% stake in Russian Novatek’s LNG-2 project in the Arctic, Novatek’s chief, Leonid Mikhelson, said, according to Reuters.

The deal was signed during a visit of French President Emmanuel Macron visited Russia for the St. Petersburg economic forum. The deal for Arctic LNG-2 could be finalized in the first quarter of 2019. The project could be worth around $25.5 billion. The final investment decision may be made in the second half of 2019.

At the moment, Total holds a 20% stake in Novatek and is one of the partners developing the Russian company’s first LNG project in Yamal, along with Chinese CNPC and Silk Road Fund.

Yamal LNG became operational last December and has already shipped two million tons of LNG. When the facility is completed, it will have an annual capacity of 16.5 million tons of the liquefied fuel.

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  • AM Hants

    What will Total do, when Trump starts waving his ‘sanction hammer’? Did not take them long to leave Iran, when Trump was tweeting.

    • Sinbad2

      Total has a lot of interests in the USA, and they could lose those investments if they annoy the Americans.

      • AM Hants

        So why have they gone to Russia, knowing the sanction situation? It so does not make sense.

        • Sinbad2

          I agree, perhaps it is a way of making the EU or France compensate Total for potential losses?

        • John

          Hey AM. I think the answer lies in the SCO. Russia, China and the rest of the group, far outweigh President Donald Trump et al. These guys are playing for the future, not the day to day speed bumps, road kill and temper tantrums. I wish well to you.

          • AM Hants

            Thanks for the well wishes and return them back.

            SCO – aren’t Turkey and Iran due to join. Plus, would not surprise me if Qatar went for observer status, till accepted, owing to this article:

            Blockade blowback: Qatar bans Saudi imports as it eyes closer economic ties with Turkey, Iran… https://www.rt.com/news/428155-qatar-import-ban-saudi-arabia-iran/

            With the SCO, aren’t they also in agreement, with regards supporting each other, in areas of defence?

            Russia, with the most powerful military in the world, the largest amount of nuclear warheads and nuclear dominant, land, sea and air. Together with a space programme.

            China, world’s largest army and 3rd largest military. Nuclear capabilities, sea and land, and also just moving into air. Together with a space programme.

            India, 4th largest military with nuclear deterrent and also with a space programme.

            Then if Turkey comes to party, leaving NATO, don’t they also bring the largest NATO Army with them, together with geopolitical treasures, so beneficial to the SCO members.

            Then you have the US, with the world’s largest and most expensive military, but, not the best. France is the 5th largest military and the UK, is rapidly dropping down the list. Believe we have dropped lower than 6th position.

            Nice to see the US are losing there power.

          • John

            There are very large and dynamic changes going on in the many places around the world. I visited my folks in the US and what is happening there is impressive. Naturally, practically none of it is on the discussion boards or in the news. In summation, the US ( believe it or not ) is preparing to have a much smaller international footprint. A lot of the bluster is covering this move.

            I am saying with a fair amount of certainty that, ……… the US is beyond revival to it’s former level of power. There are numerous indications about this, coming in from almost every single conceivable angle. I am not talking about technological development, that will continue. I am talking about power projection economically, geopolitically and militarily. It’s been long overdue in my view. There is chaos going on in all halls of power on a level that I would never have imagined and everybody is acting like things are all cool. Yeah, right.

            The thoughts you shared with me, tell me that you are definitely in the ballpark and on the ball. Have a great day AM.

          • AM Hants

            Thank you John. I seriously hope it all goes well and works out, without too much of a hissy fit. You too, have a great day.

  • Serious

    How am I again right ?? People say I’m stupid. XD.

    Who the fuck rely on the BRICS ???? BRICS is born dead. Why doesn’t Russia invite Chinese or Indian or Brazilian companies ??? China do the same : always collaborating with west companies.

    So, don’t rely too much on BRICS. Very weak alliance.

    • Jed Chado

      You dont get it , it’s pure politics , Russia want to get a western company on it so when US will make other sanctions EU will protest against it as there is a big EU company on the project and it will hurt the EU business ! China is already on the project as well so !

      • Serious

        That’s a joke. To hurt the EU business, stop shipping oil and gas to EU. Plain and simple.

        People say the same thing when Russia was building gas pipeline to Europe. “With that, Russia will maintain influence in Europe”. Then, Europe made sanctions against Russia. XD.

        • Sinbad2

          The US wants the EU to buy American LNG, and it’s more expensive than Russian LNG, and 20% more expensive than Russian piped gas.

          No seller wants to hurt a buyer. Russia has been selling gas to Europe for over 30 years. If the Russian plan was to influence Europe via gas sales, it hasn’t worked very well.
          Why make something that is simple complicated, it’s about the money, no conspiracy theories needed.

          • AssKicker47

            The Chinese can buy Russian natural gas.

          • Sinbad2

            I think every body will buy Russian or Iranian gas, cause it’s cheaper.
            The US is trying to make countries pay more than the market price, by killing off cheaper producers. It’s like a mafia racket.

  • Serious

    Every wise person knows that power is in Europe, especially west Europe.
    That’s why USA made no mistake by planning WW2 and occupying Europe.

  • Merijn

    Nice…So Emperor Emmanuelle Napoleon Macroni du Rothschild XVI Finally conquered a little Stronghold in Russia….just wait till it gets Winter…..throw the Emperor without Clothes outside…into -50 degrees Celcius…

  • Sinbad2

    The US made Total drop out of Nordstream2, and made Total drop out of Iranian projects, I find it hard to believe the US will allow Total to invest in Russian LNG.

    • James

      Yeah, I’m waiting for the US to do something crazy to bring the EU back in line.