Total Energies bought a stake in Arctic Perevoyk from Novatek


France’s Total Energies has bought a stake in Arctic Pereloading from Novatek. This enterprise is the operator of two LNG transshipment complexes under construction in Kamchatka and in the Murmansk region.

“As part of the St. Petersburg International Economic Forum, in the presence of Russian Energy Minister Nikolai Shulginov, Novatek and Total Energies SE signed a sale and purchase agreement for a 10% stake in Arctic Perevalka LLC,   ” Novatek’s release says .

In fact, back in April 2019, the head of Total, Patrick Pouyanne,  said that the French company would invest in the construction of Novatek’s LNG terminals in Murmansk and Kamchatka. And he will receive 10 percent shares in both projects.

The terminals for transshipment of liquefied natural gas in Kamchatka and in the Murmansk region are designed to ensure efficient transportation of goods from Arctic LNG-2 and other Novatek projects.

At the terminals, it will be transshipped from Arc7 ice-class tankers to conventional vessels. Each of the terminals includes a floating storage facility with a capacity of 360 thousand cubic meters with two points of board-to-board transshipment.

The capacity of each of the terminals is planned to be 20 million tons per year. The commissioning of the first stage of the transshipment complex in Murmansk is expected in December 2022. And the first stage of the terminal in Kamchatka will take place in February 2023.

By the way, a comprehensive plan for the implementation of the investment project “Marine LNG transshipment complex in the Kamchatka Territory” was recently approved. And a plan of priority measures for the implementation of the same project in the Murmansk region.

As a result, the government prepared amendments to the Merchant Shipping Code. They provide for the registration of floating storage facilities of liquefied natural gas in the RMRS.

Total Energies and Novatek will also produce hydrogen

In addition, the companies signed a memorandum of cooperation in the field of decarbonization. “The parties intend to develop cooperation to reduce greenhouse gas emissions on joint projects, the use of technologies for capturing and pumping carbon dioxide, the use of renewable energy sources in LNG projects, the production and use of hydrogen fuel, as well as the marketing of carbon-neutral products, including LNG,” the company said. …

In particular, Novatek and Total Energies intend to work out technical solutions to improve the efficiency of power generation for LNG production. Including through the use of waste heat recovery technologies.

The Memorandum provides for the development of technologies for converting gas turbine equipment to hydrogen fuel. The parties also agreed to work out decisions on the construction of wind power generation facilities and other renewable energy sources to reduce the carbon footprint of LNG projects.