TotalEnergies Withdraws Administrators From Novatek in Shift Away from Russia – The Offtake

A roundup of stories and commentary from NGI’s LNG Perception

• TotalEnergies SE is withdrawing its representatives on PAO Novatek’s board and mentioned it might cease accounting for its 19.4% stake within the firm. TotalEnergies mentioned it might report a $3.7 billion impairment on the transfer in 4Q2022 and likewise cease reserving reserves associated to its curiosity within the firm.
• Novatek is Russia’s largest unbiased fuel producer. TotalEnergies mentioned it might’t promote its stake within the firm due to sanctions. The choice comes as a part of a broader effort to drag out of Russian property following the battle in Ukraine. The corporate determined earlier this 12 months to cease offering capital for Novatek’s Arctic LNG 2 venture, which it holds a ten% stake in.
• FERC has permitted Vitality Switch LP’s request to broaden capability on the Trunkline Pipeline system to maneuver one other 400 MMcf/d of pure fuel to the Gulf Coast space. The corporate made the request to fulfill growing demand from different LNG export terminals within the area till its Lake Charles export venture enters service in Louisiana in 2028.
• “Such elevated demand has resulted in shippers wanting to move portions to the Gulf Coast from north Louisiana, and specifically from the Haynesville Shale area,” Vitality Switch mentioned in its request to FERC. “Pipeline constraints have restricted the power to maneuver volumes from north to south within the area leading to elevated pure fuel costs for purchasers accessing provides at pipeline interconnects within the Gulf Coast space.”