France's Total To Invest In Novatek's LNG Projects - CEO Pouyanne

MOSCOW (UrduPoint News / Sputnik - 19th April, 2019) France's Total is planning to invest in the construction of Novatek LNG terminals in Murmansk and on the Kamchatka peninsula, acquiring a 10-percent stake in both projects, Total CEO Patrick Pouyanne said Thursday.

"We have just announced that we are investing in Arctic LNG 2, but we are also investing in terminals in Murmansk and Kamchatka. This is part of the agreement with Novatek. To develop Arctic LNG 2, we need two hubs - one in Murmansk, and the other in Kamchatka. And Total will be a partner in these two hubs ... All this share is 10 percent," Pouyanne told reporters in Moscow.

The executive reminded that Total also holds shares in the Russian energy giant, estimated at 19.4 percetn as of September, 2018.

"In addition, remember that we are also Novatek shareholders," Pouyanne added.

Novatek has confirmed to Sputnik that Total plans to acquire shares in its projects and welcomed the decision of the French energy giant.

"Total is our partner in the Yamal LNG and Arctic LNG 2 projects, and we believe Total's intentions to acquire 10 percent stakes in both transshipment stations are strategically right and effective," the press service of the company said.

Novatek plans to build an LNG transshipment and storage terminal in the Ura Bay in the Murmansk region. The volume of transshipment may reach 20 million metric tons per year. The Russian independent natural producer also plans to build an LNG transshipment point in Kamchatka with the volume of 20 million metric tons per year, with a possible increase to 40 million.

In March, Novatek said that it had finalized a deal with Total on the sale of a 10 percent stake in Arctic LNG 2, a liquefied natural gas production project.