Total has received government approval to purchase a stake in the Yamal LNG project in the Russian Arctic. Russia currently has strict laws preventing foreign investment in strategic sectors but this approval makes an exemption for Total. Total bought a 12% stake in Novatek for US$ 4 billion as a condition of it entering the Yamal LNG project.
Total is planning to buy a 20.5% interest in the project from Novatek, Russia’s second largest gas producer, who already own 51% in the project and have the option to buy a further 49% in the project from shareholders.
Currently the project is planned for startup in 2018, and Novatek has said that other foreign partners including companies from Qatar and India may be invited to join the Arctic project.
The Kremlin is very keen to sponsor the Yamal LNG project as it wants to increase the Russian market share of the natural gas market and content wit market leaders Qatar. So far the government has already agreed to provide tax breaks for Yamal LNG and help with building some of the required transportation network.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/21072011/total_to_buy_stake_in_yamal_lng/