- Mitsui & Co, Itochu Corp and JERA are expected to sign new contracts with Oman to purchase LNG.
- The global supply of this fuel has become scarce.
- The deals will help resource-depleted Japan diversify its fuel supply.
NHK reported on Tuesday that Mitsui & Co (8031.T), Itochu Corp (8001.T), and Japan’s largest power generator JERA are expected to sign new long-term contracts with Oman to purchase liquefied natural gas (LNG).
The Japanese companies are expected to purchase approximately 2 million tonnes of LNG beginning in 2025 on approximately 10-year contracts, according to NHK.
As a result of Russia’s invasion of Ukraine and a series of Western sanctions on Russian energy, the global supply of this fuel has become scarce, which will help resource-depleted Japan diversify its fuel supply.
NHK reported that the Japanese companies will likely sign the contracts on Tuesday, with Japanese industry minister Yasutoshi Nishimura, who is currently in the Middle East, attending the signing ceremony.
Mitsui, Itochu, and JERA were unavailable for immediate comment.
In 2021, Japan imported 1,9 million tonnes of LNG, representing 2.6% of its total imports.
NHK reported that additional Japanese companies are in negotiations with Oman to purchase LNG.
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