TotalEnergies exits Russian Arctic LNG 2 project but retains $1.3 billion loan claim
The French energy major has transferred its remaining stake in the sanctioned Russian gas venture to a Novatek subsidiary, though it still seeks repayment of shareholder loans that remain blocked by current restrictions.
TotalEnergies has finalized its withdrawal from the Arctic LNG 2 project in Russia. The French energy major transferred its 10 percent equity stake to NordLine, a subsidiary of Russian producer Novatek. This move formally ends its participation in the major liquefied natural gas development on the Gydan Peninsula.
Despite relinquishing its ownership position, the company is holding onto a substantial financial claim. TotalEnergies maintains the contractual right to seek reimbursement for approximately $1.3 billion in shareholder loans previously extended to the venture.
However, the actual recovery of these funds remains highly uncertain under the current geopolitical climate. Management noted that any future repayment remains conditional and subject to applicable sanctions. These restrictions continue to complicate financial flows tied to Russian energy assets.
The Arctic LNG 2 development was originally designed to operate three liquefaction trains with a total planned capacity of 19.8 million tonnes per year. Initial timelines targeted 2023 for the first train to come online, with subsequent units scheduled for 2024 and 2026.
Those operational targets have been derailed, as the venture became commercially constrained by international sanctions. The exit allows TotalEnergies to formally close this chapter on its balance sheet, even if the loan recovery remains a conditional, long-term prospect for investors.
Strategic Pivot to Oceania
This finalized exit marks the latest step in the group’s broader strategy to unwind its Russian exposure. It frees up management focus and capital to reallocate toward more stable jurisdictions. The group is actively advancing alternative liquefied natural gas opportunities to offset the lost capacity.
Most recently, the company selected Daewoo Engineering & Construction as the preferred bidder for a new LNG project in Papua New Guinea. This development underscores a deliberate strategic shift toward Oceania. It demonstrates how the firm is actively reshaping its global commodity portfolio to secure future growth outside of sanctioned regions.
