Russia and the French energy giant Total will jointly invest 38 billion dollars in a liquefied natural gas project in the Arctic, Prime Minister Vladimir Putin said Wednesday, dpa reported.
The plan calls for the construction of an Arctic Sea terminal in Russia's Yamal Peninsula which would, once completed in 2018, allow France to receive annually 15.5 million tonnes of liquefied gas by tanker, Interfax reported.
"Thanks to the project Russia's presence in the market for liquefied natural gas (LNG) will expand," Putin at a Moscow press conference.
Russia's government had previously approved Total's purchase of a 20.5 per cent stake in Yamal SPG.
Yamal SPG is owned by Russia's largest private gas producer, Novatek. Total in April purchased a 12 per cent stake of Novatek.
Novatek holds a production license to some of the richest gas fields in North West Siberia. The region according to estimates contains some 1.3 trillion cubic meters of gas and nearly 52 million tons of gas condensate.
The Yamal peninsula is a remote Arctic territory of permafrost, tundra, swamp and pine forest. Its remoteness and harsh conditions makes energy development costly.