TotalEnergies to Continue Shipping Russian LNG, CEO Says

LONDON—France’s TotalEnergies SE will continue to ship out LNG from Russia in the absence of sanctions, the company’s Chairman and CEO Patrick Pouyanne said at a recent industry event.

The top executive at the Paris-based supermajor acknowledged that opposition to Russia was clear regarding its invasion of Ukraine and that there would be no more investments in new projects. But he said his company would continue to trade LNG.

“We will continue to ship LNG from Russia as long as there is no sanction from Europe on the gas, because we contribute to the security of supply for Europe,” Pouyanne said during the Energy Intelligence (EI) Forum, adding that TotalEnergies would immediately stop all operations if there were sanctions.

TotalEnergies is moving forward with efforts to mobilize both human and financial resources to contribute to the diversification of Europe’s gas supply by maximizing utilization of its LNG regasification capacity, the company announced on July 28, during its second quarter webcast. 

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Total in Russia

In Russia, TotalEnergies holds investments in two major LNG projects—Yamal LNG and Arctic LNG 2.

The stakes are held both directly and through its holding in the company PAO Novatek, whose production and sale of LNG are not materially impacted by the sanctions adopted as of the date hereof, the company revealed in its first-half 2022 financial update in July.

“We will continue to ship LNG from Russia as long as there is no sanction from Europe on the gas, because we contribute to the security of supply for Europe.”—Patrick Pouyanne, TotalEnergies

LNG production in Russia comes from the Yamal LNG project. This onshore project to develop the onshore South Tambey gas and condensates field located on the Yamal peninsula was launched in 2013 by OAO Yamal LNG.

TotalEnergies holds a 20% direct interest (an aggregated 29.73% interest including an indirect interest in Novatek) in the 17.4 million ton per annum (mtpa) capacity Yamal LNG liquefaction plant, according to details on the company’s website. 

The company also holds a 10% direct interest (an aggregated 21.64% interest including an indirect interest in Novatek) in the 19.8 mtpa Arctic LNG-2 liquefaction project.  

TotalEnergies and its partners approved the final investment decision for Arctic LNG-2 in 2019. The project is expected to develop the resources of the Utrenneye onshore field (gas and condensates) located on the Gydan Peninsula opposite the Yamal Peninsula.

“Depending on the developments of the Russian-Ukrainian conflict and the measures that the European and American authorities could be required to take, the activities of TotalEnergies in Russia could be affected in the future,” the company warned in its financial update in July.