TotalEnergies (formerly Total) and Novatek have inked a sale and purchase agreement (SPA) to enable the former to acquire a 10% stake in Arctic Transshipment, a Russian LNG transshipment terminal operator.

Currently, Novatek owns 100% of Arctic Transshipment, which owns and will operate two liquefied natural gas (LNG) transshipment terminals in Russia.

The two LNG transshipment terminals are being constructed in the Murmansk and Kamchatka regions.

The financial terms of the deal were not disclosed.

The two transshipment complexes to be operated by Arctic Transshipment are part of the logistical chain of Novatek for streamlining the use of the Arc7 ice-class tanker fleet. The terminals are expected to help Novatek ensure efficient and cost-effective transportation of LNG from its Arctic LNG 2 and other projects.

Each of the transshipment terminals will have a floating LNG storage unit with a capacity of 360,000m3. Both the terminals will have two ship-to-ship transfer kits.

The terminals will enable the transshipment of LNG from Arc7 ice class LNG carriers on the iced waters of the Arctic Ocean to traditional LNG carriers, which handle the remaining delivery.

Novatek management board chairman Leonid Mikhelson said: “The entry of our long-term partner TotalEnergies into the LNG transshipment project will enhance the competitiveness of our joint projects and contribute to the successful development of our LNG logistics chain in accordance with best industry practices in environmental protection and climate change mitigation.”

The optimisation of the logistical chain by restricting the use of Arc7 ice class LNG carriers, the costs and CO2 emissions of the LNG transportation will be reduced, said TotalEnergies.

TotalEnergies chairman and CEO Patrick Pouyanné said: “These terminals mark an important step in the advancement and consolidation of the Arctic LNG 2 project, and will contribute to the safe and sustainable export of cargoes from our existing and developing Yamal projects.”

The French company has a 19.4% stake in Novatek. It also owns a stake of 20% in Yamal LNG, which began production in December 2017.

TotalEnergies also has a stake of 10% in the Arctic LNG 2 project in Russia, which is currently under construction, and set to deliver its maiden LNG cargo in 2023.

Separately, the two companies have signed a Memorandum of Understanding (MoU) to jointly work on sustainable reductions of the CO₂ emitted from the LNG production facilties.