France's Total buys stakein Arctic LNG project

French energy giant Total has signed an agreement to buy a 10 percent stake in the Arctic LNG-2 project from Russia's Novatek, the Russian gas producer said in a statement Tuesday.

Under the agreement, besides buying the stake, Total will provide financing. The transaction will be closed by the end of this month.

"We have worked closely with Total for many years and have built a good working relationship based on mutual trust and respect," Novatek Management Board Chairman Leonid Mikhelson said in the statement.

The Arctic LNG-2 project envisages the construction of three liquefied natural gas (LNG) production lines with an annual capacity of 6.6 million tons each.

The 20-21 billion U.S. dollar project is based on the hydrocarbon resources of the Utrenneye field located in the Gydan peninsula in the Arctic Yamalo-Nenets Autonomous District.

Its proven and probable reserves totaled 1,138 billion cubic meters of natural gas and 57 million tons of liquids by the end of 2018, the statement said.