Japan Inks Deal With Oman To Buy 2.3-M Tons Of LNG Annually

Japanese trading houses Mitsui & Co., Itochu Corp., and electricity firm Jera Co. have agreed with Oman to purchase about 2.35 million tons of liquefied natural gas (LNG) a year from the Middle East country, the Japanese industry ministry said, Mainichi Shimbun reported.

Photo Insert: Japanese industry minister Yasutoshi Nishimura is welcomed by His Majesty Sultan Haitham bin Tariq, the Sultan of Oman.

Against the backdrop of energy supply disruptions due to Russia's invasion of Ukraine, oil and gas explorer Inpex Corp. also announced the same day it has signed a 20-year agreement with Venture Global LNG to purchase 1 million tons per annum of LNG from the United States, one of the world's leading LNG exporters.

Japanese industry minister Yasutoshi Nishimura, currently on a trip to the Middle East, and Oman ministers met in the country Tuesday and attended a signing ceremony between the Japanese firms and the Oman side.

"It is extremely significant in terms of energy security, as we will be able to a secure, stable supply of LNG both in quantity and quality on a long-term basis," Nishimura said at a press conference.

Mitsui, Itochu and Jera, a joint venture between Tokyo Electric Power Co. Holdings Inc. and Chubu Electric Power Co., will procure LNG from 2025 for about 10 years, according to the ministry.

Japan imports about 1.9 million tons of LNG, or about 2.6 percent of total LNG imports, from Oman. Inpex, meanwhile, said it will purchase LNG to be produced at Venture Global LNG's plant in Louisiana, construction of which is expected to begin in 2023.

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