TotalEnergies plans to offtake around 3 mln tonnes per year of LNG from Yamal LNG starting in Jan 2027 depending on market conditions

MOSCOW. Oct 29 (Interfax) - France's TotalEnergies previously purchased approximately 5 million tonnes of liquefied natural gas (LNG) from Yamal LNG, though the maximum volume the company will be able to offtake from the project will decrease to 4 million tonnes starting in January 2027 owing to European sanctions, CEO Patrick Pouyanne said during a conference call.

Pouyanne said that an amendment to European sanctions, adopted this July, allows for the delivery of Yamal-produced gas to third-country markets. Whether the company chooses to offtake this gas will depend on the destination markets, the distance involved, and the resulting freight costs.

Pouyanne suggested that TotalEnergies would likely be able to purchase around 3 million tonnes from Yamal LNG.

"When we render our calculations today, we estimate that we could take between 3 and 4 million tonnes, say 3 million tonnes. That will depend on where this LNG is ultimately destined. To be honest, I do not have the full picture regarding Yamal, because, as of today, we have limited our interest strictly to what is permissible under the sanctions," he said.

The company previously entered into a long-term contract to purchase 4 million tonnes of LNG from Yamal LNG; European sanctions permit the resale of such LNG to non-European markets, provided it is done within the framework of long-term contracts.