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Japanese firms agree

Oman LNG supply deals

JAPAN JAPANESE firms Mitsui & Co., Itochu Corp. Industry (METI) said that “the [over] 2mn
and power supplier JERA last week signed tonnes to three companies were volumes con-
agreements for 2.35mn tonnes per year (tpy) of tracted to date, and there is a good chance of
LNG supplies from Oman. The deals will begin increasing further after the new year with a few
in 2025 and will see the Sultanate’s state-owned other prospective companies.”
Oman LNG provide gas for terms ranging from Also on December 27, JERA announced that
five to 10 years. it had signed an LNG sale and purchase term
Japanese Minister of Economy Yasutoshi sheet with Oman LNG for 12 cargoes – 0.8mn
Nishimura said on December 27 during a press tonnes – of LNG, FOB, for 10 years beginning
conference in Muscat: “Oman LNG has a strong in 2025.
advantage for stable supply as it does not tran- The agreement also represents a major boost
sit the Strait of Hormuz, [therefore] getting less for Oman LNG. According to market experts,
impact from geopolitical situations.” it will provide support for multi-million-dollar
He added that the 2.35mn tpy would prove investments the company laid out in its 2017
necessary as Japan “proceeds [towards] a smooth ‘Life Extension’ programme. Projects include
transition to clean energy for the 2050 carbon de-bottlenecking and restoration of the facility,
neutrality target.” The volume of gas will rep- having started with an upgrade in gas processing
resent an increase on the 1.9mn tonnes of LNG capabilities at the Qalhat complex and with the
Japan imported from Oman during 2021. ‘capacity restoration’ project returning capacity
The move also provides some certainty for to 10.4mn tpy in 2019.
Oman LNG, which will see an 18-year deal with Japan and Oman also agreed to the extension
Itochu expire in 2024. Other 25-year deals with of a memorandum of understanding (MoU) in
Korea Gas Corp. (KOGAS) and Japan’s Osaka other energy sectors, including crude oil, natural
Gas are also set to expire in the same year. gas and clean energy. They also agreed to co-op-
Speaking to S&P Global Platts, an official erate further in the fields of hydrogen, ammonia
from Japan’s Ministry of Economy, Trade and fuel and carbon.™

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