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Novatek, Total sign agreement on Arctic LNG 2 project

The document was signed after talks between Russian President Vladimir Putin and France’s President Emmanuel Macron

STRELNA, May 24. /TASS/. Novatek and Total signed an agreement in respect of participation of the French company in Arctic LNG 2 project. The document was signed after talks between Russian President Vladimir Putin and France’s President Emmanuel Macron in their presence.

Arctic LNG 2 is the second liquefied natural gas plant of Novatek to be launched in 2023. Its capacity will be over 18 mln tonnes of LNG per year.

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Novatek will sell the share of 10% in the Arctic LNG 2 project to France’s Total, Chief Executive Officer of Novatek Leonid Mikhelson told reporters on the sidelines of the St. Petersburg International Economic Forum (SPIEF).

"Total will participate with the share of 10%," Mikhelson said.

Novatek plans to keep the 60% stake in the project, the top manager said.

"We plan to hold the share of 60%. If we decide to reduce the share, but not less than 50% in the project, then Total will have the right to increase its stake to 15%," Mikhelson added.

The cost of the Arctic LNG 2 project is about $25.5 bln, the top manager noted. This figure is indicated in the agreement for sale of 10% in the project to Total.

The Russian company plans to close the deal as early as in the first quarter of 2019, Novatek said.

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