Sources say that Japan's Mitsui is close to purchasing a stake in Qatar LNG Project.
Five sources said that Japan's Mitsui & Co. is on the verge of buying a stake, in the second phase, in QatarEnergy’s massive North Field project as it seeks a stable liquefied gas (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 weighting in Tokyo’s energy portfolio, as the Middle Eastern nation struck a 27-year supply agreement with JERA earlier this week, Japan’s largest power generator.
QatarEnergy declined to respond to an inquiry for comment, and Mitsui also declined to make a comment.
Sources spoke under condition of anonymity, as the matter has not yet been made public. The stake size and value are not immediately known.
One source said that the talks are in an advanced state.
According to another industry source, Mitsui and 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 Trading House, a Japanese trading house, stated in 2023 it was considering purchasing a stake in this project in order to ensure a stable supply of LNG.
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.
Unspecified sources claim that Malaysian?Petronas also expressed an interest in a stake in the project.
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)
