French energy group Total concluded a deal Thursday to increase its role in liquefied natural gas projects in the Arctic with Russian firm Novatek. The deal will see Total take a 10 percent direct stake in Novatek's Arctic LNG 2 project on the Gydan Peninsula in the north of Siberia for $2.5 billion. Total and Novatek, in which the French company also has a stake, are already partners in the Yamal LNG facility located nearby and which began shipping out LNG supplies last year using ships specially constructed to handle the frigid Arctic climate.
"This project fits into our strategic partnership with Novatek and also with our sustained commitment to contribute to developing the vast gas resources in Russia's far north which will primarily be destined for the strongly growing Asian market," Total's chief executive Patrick Pouyanne was quoted as saying in a statement. It said a final decision on the investment into the $25 billion complex is expected next year, which is planned to begin shipments by 2023 and produce 19.8 million tonnes per year of gas.
The deal was signed before Russian President Vladimir Putin and his French counterpart Emmanual Macron as part of Russia's annual economic forum.
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