TotalEnergies records $4.1 billion impairment over Arctic LNG 2 project

div classBodysc17zpet90 cdBBJodivpPARIS Reuters TotalEnergies said on Wednesday it had recorded a firstquarter impairment of about 4.1 billion partly related to Arctic LNG 2, a liquefied natural gas development project in the Russian Arctic that has been hit by sanctions against Russia.p

pThe Arctic LNG 2 facility, located on the Gydan peninsula, was expected to start operations in 2023. However, the plans have been under threat following sanctions by Western powers against Russia in response to its Feb. 24 invasion of Ukraine.pdivdivdiv classBodysc17zpet90 cdBBJodiv

p“TotalEnergies has drawn upon the consequences of what has happened. This provision of around 4 billion shows that TotalEnergies is starting to turn the page,” said a spokesperson for the French oil and gas company.p

pThe 21 billion Arctic LNG 2 project is key for Russias plans to raise its share of the global liquefied natural gas LNG market to 20 by 2035, expanding its annual LNG output to 120 million140 million tonnes from around 30 million tonnes at present.p

pAnalysts have said Russia will need to rethink its aim of attaining the 20 share target in the wake of European Union sanctions against it over the conflict in Ukraine.p

pRussias Novatek holds a 60 stake in the Arctic LNG 2 project, while 10 stakes are held by TotalEnergies, Japan Arctic LNG – a consortium of Mitsui & Co and JOGMEC – and Chinese firms CNPC and CNOOC.p

p Reporting by Benjamin Mallet, Sudip KarGupta and Nicolas DelameEditing by Chris Reese and Paul Simaop

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