• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 2 mins Is $60/Bbl WTI still considered a break even for Shale Oil
  • 9 hours Prosecutors Fine Bosch 90 Million Euros For Emissions Cheating Role
  • 6 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 9 hours Apple Boycott in China
  • 1 hour Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 21 mins Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 3 hours Devastating Sanctions: Iran and Venezuela hurting
  • 8 hours California's Oil Industry Collapses Despite Shale Boom
  • 4 days Some Good News on Climate Change Maybe
  • 16 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 7 hours IMO 2020 could create fierce competition for scarce water resources
  • 5 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 7 hours IMO2020 To scrub or not to scrub
Middle East Tensions Put Oil Markets On Edge

Middle East Tensions Put Oil Markets On Edge

Oil markets continue to be…

U.S. Oil Rig Count Dips To 14-Month Low

U.S. Oil Rig Count Dips To 14-Month Low

The the number of active…

France Extends State Guarantee For Total-Participated Russian LNG Projects

Yamal LNG

France is extending the state guarantees for the Russian liquefied natural gas (LNG) projects Yamal LNG and the Arctic LNG 2 projects, Russian media quoted France’s Economy Minister Bruno Le Maire as saying after a meeting with his Russian counterpart Maxim Oreshkin in Paris.

According to Le Maire, France will also provide longer terms for loan repayment for the two Russian LNG projects, in which French oil and gas major Total has stakes.  

“I confirm that we made a decision to give longer terms for repayment of loans, as for the state guarantees - this is a guarantee of the French state to the Yamal (LNG) project. All participants in this project requested it,” Russia’s TASS news agency quoted Le Maire as saying on Monday.

“This is a success and an economic signal, but behind there is a political signal that we want to strengthen our cooperation in the energy sector based on the Yamal (LNG) project. The same goes to the Arctic LNG-2 project - it is very important for us that the largest number of French companies could take part in it.”

Total holds 20 percent in the Yamal LNG project led by Russia’s Novatek and also participated by Chinese CNPC and Silk Road Fund. Yamal LNG started operations at the end of last year. Operator Novatek said earlier this month that Yamal LNG had reached full capacity at the plant’s three LNG trains.

In May this year, Total expanded its partnership with Novatek with the proposed Arctic 2 LNG project. Total and Novatek signed an agreement under which Total would buy a direct working 10-percent stake in Arctic LNG 2 on the Gydan Peninsula in the north of Siberia.

“Arctic LNG 2 will contribute to our strategy of growth in LNG by developing competitive projects based on giant low costs resources,” Patrick Pouyanné, Chairman and CEO of Total, said at the time.

The final investment decision for Arctic LNG 2 is expected next year, with first train start up potentially in 2023.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Sailor on December 18 2018 said:
    Deutsche Bank financed Nord Stream 2 and the Turk Stream. Consequently Deutsche Bank is collapsing. The future of large French banks can meet the same fate with this decision to violate Russian sanctions for the invasion of Ukraine.
  • Mamdouh G Salameh on December 18 2018 said:
    This is a courageous decision by France to extend state guarantees for Total-participated Russian LNG projects, namely the Yamal LNG and the Arctic LNG 2 projects and also to provide longer terms for loan repayment for the two Russian LNG projects.

    And since both Russia and Iran are under US sanctions, this begs the question as to why Total has not continued its participation in the Iranian South Pars gas field which is shared with Qatar and which is the world’s largest offshore natural gas field and has not accepted the French State’s guarantees as it did with its Russian-participated gas projects. It was a cowardly act on the part of Total to withdraw from Iran under threat of US sanctions.

    Moreover, France’s guarantees to total and its extension of repayment terms for two Russian companies is a signal that US sanctions against Russia are starting to crumble.

    The Yamal LNG and the Arctic LNG 2 projects are a great success story in expanding Russia’s LNG market to China and other markets of the world including Japan. They are also part of President Putin’s aim to make Russia the world’s largest producer and exporter of LNG.

    When it comes to the Natural gas and LNG market, Russia is on a win-win ticket. It has consolidated its grip on the European Union’s (EU’s) gas market well into the future by offering reliable and cheap supplies of natural gas. And with the completion of both Nord Stream 2 and the Turk Stream by the end of 2019, its grip on the EU’s natural gas market will be unshakeable.

    It is true that Russia’s LNG ambitions will face formidable resistance from Qatar, Australia and the United States. Still, Putin’s Russia will achieve its goal of becoming the world’s LNG producer and exporter.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News