France extends state guarantees for Russian LNG projects

France extends state guarantees for Russian LNG projects

France is set to extend its guarantees for Russian LNG projects Yamal LNG and Artic LNG 2 projects, according to French Economy Minister Bruno Le Maire.

Following a meeting with his Russian counterpart Maxim Oreshkin, Le Maire said France would also provide longer terms for loan repayment to the projects.

Le Maire said: “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.

“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 a 20% stake in Yamal LNG, led by Russia’s Novatek, which began operations at the end of last year and reach full capacity earlier this month.

The partnership between the two companies was extended in May this year with the proposed Artic 2 LNG project, which Total has agreed to buy a direct working 10% stake in.

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

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