The IX International Forum

Arctic: today and the future

December 05-07, 2019, St.Petersburg


Total can launch new projects in cooperation with Russia


Total can launch new projects in cooperation with Russia

French oil and gas company Total intends to launch new projects in cooperation with Russian partners, based on Yamal project experience, as reported to Figaro by the head of the French concern, General Director of Total Exploration and Production Russia Arnaud Le Foll.  

«For Total, the world's second-largest liquefied natural gas operator, the Yamal project is the first stage. The gas resources in the north of Russia are enormous and now we want to use all experience gained in order to launch new projects with developments of a similar type together with our Russian partner Arctic LNG 2», - Figaro quotes Le Foll in its report from Yamal.

According to him, over time «we will receive 19.8 million tons of liquefied natural gas from the field».

French oil and gas company Total participates in the Yamal LNG project with share 20%, the controlling stake belongs to the Russian Novatek. Three production lines with capacity of 5.5 million tons of LNG have already built within the project, and an additional fourth line with a capacity of 1 million ton is under construction. Total is also going to participate in new Novatek project - Arctic LNG 2, which provides for three lines with each capacity of 6.6 million tons per year, with a share of 10% and the possibility of increasing it to 15%.

The budget of Yamal LNG is 27 billion dollars. As part of attracting project financing, Yamal LNG received money from the National Wealth Fund of the Russian Federation (150 billion rubles)  on a repayable basis, opened credit lines with Sberbank and Gazprombank (3.6 billion euros), China Development Bank and Chinese Export-Import Bank ( 9.3 billion euros and 9.8 billion yuan), Italian  Intesa Sanpaolo under insurance coverage of Italian export credit agency SACE and French export credit agency COFACE (750 million euros), the Japanese bank JBIC (200 million euros).

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