TotalEnergies CEO seeks clarification on EU ban on Russian gas
Patrick Pouyanne, the CEO of TotalEnergies, said on Wednesday that the company is asking both France's?government and EU Commission for clarification on an EU ban against importing liquefied gas from Russia.
Pouyanne said in an analyst briefing that it appears that a European company is unable to market Russian LNG. This was something we had not anticipated. He added that the French oil giant may abandon the Yamal project if they are unable to sell the fuel.
Total is one the largest buyers in the world of Russian LNG, delivering 5 million metric tonnes of fuel per year to customers in Europe and Asia.
Pouyanne stated last year that, if only the EU banned Russian gas imports, he would divert his cargoes into Turkey or Asia.
In a Thursday 'fourth quarter earnings call with analysts,' he stated that restrictions on Russian LNG projects and selling the fuel to other countries would be problematic.
Total holds a direct 20% stake in Yamal LNG, as well as 19,4% in Novatek, the parent company of Yamal.
Aly Blakeway is the manager of Atlantic LNG for S&P Global Energy. She said: "If European firms are prohibited from marketing Russian LNG then force majeure risks and project exits will increase sharply. This could tighten supply in the Atlantic Basin and drive up spot LNG prices and 'European gas' prices." Total, who no longer include its 'Russian holdings' in its financial statements, declared force majeure on another Novatek project in 2024, Arctic LNG 2. The export facility had been placed under the?U.S. sanctions. sanctions. It was unable to repatriate the dividends it received from its shareholding in 'Novatek,' claiming in 2024 that over $2 billion was stuck in Russia.
(source: Reuters)
