Sources: Mitsui Japan is close to a stake in Qatar LNG Project
Five sources said that Japan's Mitsui & Co. is on the verge of?buying a share in the second phase QatarEnergy’s massive North Field Project?in order to ensure a stable liquefied gas supply (LNG).
The deal, if reached, would strengthen Japan's energy safety as it seeks to meet the increase in electricity demands from the artificial-intelligence boom using conventional fuels.
Qatar would also gain a larger weight in Tokyo's portfolio of energy after striking a 27-year deal with JERA earlier this week, Japan's largest power generator.
QatarEnergy declined to comment on a comment request, and Mitsui also declined.
Sources spoke under condition of anonymity, as the matter was not yet public. The stake size and value was not immediately available.
One source said that the talks are in an advanced state.
According to a second industry source, Mitsui & QatarEnergy have finalised their terms.
QatarEnergy expects that the North Field LNG project, the largest in the world, will boost its output of super-chilled fuel from 77 million metric tonnes per year to 126 millions metric tons by 2027.
According to a research report from the Japan Organization for Metals and Energy Security, the second phase of the project, North Field South will add 16 mtpa for a cost around $17.5 billion by 2024.
Talks at 'Advanced Stage'
QatarEnergy? holds a 75% share in North Field South, while TotalEnergies (major) and Shell (major) each hold 9.375% and ConocoPhillips owns 6.25%.
Mitsui, an international trading company, announced in 2023 it would consider?buying stakes in the project in order to ensure stable LNG supply.
The deal will extend the cooperation between the two companies after Mitsui signed a 10-year contract with QatarEnergy for the supply of condensate in 2024, a natural gas by-product.
According to one source, Malaysian Petronas has also expressed an interest in a stake in the project. However, the source did not provide any further details.
Petronas did not reply to a comment request.
Two sources confirmed that Tohoku Electric Power, Kyushu Electric Power, and other regional Japanese utilities are interested in buying Qatar LNG through JERA.
Tohoku declined comment. JERA and Kyushu declined to comment. Reporting by Yuka Obaashi in Tokyo, Marwa Rashed in London, and Emily Chow, Doha. Editing by Katya Glubkova Florence Tan Raju Gopalakrishnan.
(source: Reuters)
