Page 5 - AsianOil Week 01 2023

AsianOil PIPELINES & TRANSPORT AsianOil

Japan LNG deals agreed

with US, Oman

JAPAN AS part of the nation’s move to diversify it energy national energy security by the firm.
supply portfolio and in turn avoid potential Jera, meanwhile, was much more vocal after
Japan is reversing its future shortages, a number of Japanese firms the news became public, saying of the deal to buy
stance of moving away have struck deals with LNG suppliers in the US LNG from Oman Liquefied Natural Gas that the
from fossil fuels. and Oman. company would receive up to 12 cargoes equat-
Touted as something of a reversal of recent ing to 0.8mn tpy for 10 years starting in 2025.
pledges to move away from fossil fuels by some, Speaking to domestic Japanese as well as
the deals were headed by Japan’s top gas explora- international media at a press conference in
tion company, Inpex. Muscat last week following his meeting with
In a deal to purchase 1mn tonnes per year Omani Energy Minister Salim al Aufi and Sultan
(tpy) of LNG for a period of 20 years from Louisi- Haitham bin Tariq al-Said, Japanese Minister of
ana-based Venture Global, an announcement by Economy, Trade and Industry (METI) Yasutoshi
Inpex said the agreement will enable the firm to Nishimura said “Oman LNG has a strong advan-
“expand its LNG supply capacity and diversify its tage for stable supply because it does not transit
supply sources to further contribute to the stable the Strait of Hormuz so that it gets relatively less
supply of energy worldwide.” impacted from geopolitical situations.”
Construction at the Venture Global LNG’s Nishimura went on to say that “Around
CP2 LNG project, around 100 km to the south- 2.35mn tpy of LNG for around 10 years from
west of Lafayette is expected to begin sometime 2025 also means important LNG deals as the
this year pending state approval. nation proceeds (towards a) smooth transition
Supplies will then be shipped to the Inpex to clean energy for the 2050, carbon neutrality
terminal at Naoetsu on the Sea of Japan coast in target.”
Niigata Prefecture, 300 km to the north-west of Highlighting the need for climate concern
Tokyo. whilst at the same time guaranteeing energy
On top of the US deal, three of Japan’s most security for the world’s third-largest economy,
prominent energy industry firms, Itochu, Jera however, did not stop some environmental
and Mitsui, have announced a further deal with groups in Japan from bemoaning an apparent
the government of Oman to secure around 2mn reversal in assurances that Tokyo would be lim-
tpy of LNG for 10 years starting in 2025. iting gas imports by the end of the decade.
A number of sources in Japan indicate the In recent months, Japan has been hit hard by
annual total could be as high as 2.35mn tpy. rising LNG prices, something the central gov-
The announcement was made public in the ernment in Tokyo is keen to avoid in 2023 and
final week of 2022, although it was understood beyond.
that Mitsui, at least, had been seeking a deal for With global LNG supply tight of late, and
some time. prices forecast to keep rising throughout 2023,
When asked to disclose the terms of the deal, and into 2024, these deals “have very great signif-
both Mitsui and Itochu offered limited com- icance for our country's energy security because
ment, with Mitsui merely confirming a deal had we have got an outlook of securing LNG with a
been agreed. Itochu was even less forthcoming, both stable volume and price” the METI minister
only referring to efforts to help in promoting added. ™

Week 01 06•January•2023 www. NEWSBASE .com P5