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TOKYO (Jiji Press) — Japanese traders Mitsui & Co. and Itochu Corp. , and power firm Jera Co. reached a basic agreement Tuesday to purchase 2.35 million tons of liquefied natural gas annually from Oman for around 10 years from 2025.
The deal is designed to secure a stable source of LNG amid supply concerns in the wake of Russia’s invasion of Ukraine.
LNG imports from Oman are “greatly advantageous in terms of stable supply,” Japanese industry minister Yasutoshi Nishimura told an online press conference from Oman after a meeting with the Middle Eastern country’s energy minister.
“Oman’s LNG is located off the Strait of Hormuz, making it less likely to be affected by geopolitical factors,” Nishimura said.
Several other Japanese companies are also in talks with Oman on LNG supply. If an agreement is struck, the overall amount of LNG purchases by Japanese firms from Oman is expected to top 3 million tons annually.
Japanese companies, including Mitsui, Itochu, another trader Mitsubishi Corp. and Osaka Gas Co. , have stakes in an LNG project in Oman.
In 2021, Japan imported some 1.9 million tons of LNG from Oman, or some 2.6 pct of the country’s total annual LNG imports.
