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Japanese firms

agree LNG deals with

suppliers in US, Oman

GLOBAL AS part of Japan’s move to diversify its energy
supply portfolio and in turn avoid potential
future shortages, a number of the country’s firms
have struck deals with LNG suppliers in the US
and Oman.
The deals were headed by Japan’s top gas
exploration and production company, Inpex,
but have been seen as something of a reversal of
recent pledges to move away from fossil fuels by
some.
One deal involves the purchase of 1mn tonnes
per year (tpy) of LNG for a period of 20 years
from Louisiana-based Venture Global LNG.
Inpex said the agreement will enable the firm to
“expand its LNG supply capacity and diversify its
supply sources to further contribute to the stable
supply of energy worldwide”.
Construction at the Venture Global’s CP2
LNG project, around 100 km to the south-west
of Lafayette, is expected to begin sometime this
year pending state approval.
Supplies will then be shipped to the Inpex
terminal at Naoetsu on the Sea of Japan coast in
Niigata Prefecture, 300 km to the north-west of
Tokyo.
On top of the US deal, three of Japan’s most
prominent energy industry firms, Itochu, JERA
and Mitsui & Co., have announced a further deal
with the government of Oman to secure around
2mn tpy of LNG for 10 years starting in 2025. A advantage for stable supply because it does not
number of sources in Japan indicate the annual transit the Strait of Hormuz so that it gets rela-
One deal involves total could be up to 2.35mn tpy. tively less impacted from geopolitical situations.”
The announcement was made public in the
Nishimura went on to say that around
the purchase of final week of 2022, although it was understood 2.35mn tpy of LNG for around 10 years from
1mn tonnes per that Mitsui, at least, had been seeking a deal for 2025 “also means important LNG deals as the
nation proceeds [towards a] smooth transition
some time.
When asked to disclose the terms of the deal, to clean energy for the 2050, carbon neutrality
year (tpy) of LNG both Mitsui and Itochu offered limited com- target”.
for a period of ment, with Mitsui merely confirming a deal had Highlighting the need for climate concern
been agreed. Itochu was even less forthcoming, whilst at the same time guaranteeing energy
20 years from only referring to efforts to help in promoting security for the world’s third-largest economy,

Louisiana-based national energy security by the firm. however, did not stop some environmental
JERA, meanwhile, was much more vocal after groups in Japan from bemoaning an apparent
Venture Global the news became public, saying of the deal to buy reversal in assurances that Tokyo would be lim-
LNG from Oman Liquefied Natural Gas that the iting gas imports by the end of the decade.
In recent months, Japan has been hit hard by
LNG. company would receive up to 12 cargoes equat- rising LNG prices, something Tokyo is keen to
ing to 800,000 tpy for 10 years starting in 2025.
Speaking to domestic Japanese as well as avoid in 2023 and beyond.
international media at a press conference in With global LNG supply tight of late, and
Muscat last week following his meeting with prices forecast to keep rising throughout 2023
Omani Energy Minister Salim al Aufi and Sul- and into 2024, these deals “have very great signif-
tan Haitham bin Tariq al-Said, Japanese Minister icance for our country’s energy security because
of Economy, Trade and Industry (METI) Yasu- we have got an outlook of securing LNG with a
toshi Nishimura said: “Oman LNG has a strong both stable volume and price”, Nishimura said.™

Week 01 05•January•2023 www. NEWSBASE .com P9