Mitsui, JOGMEC to Invest in Russian LNG Project in Arctic

Economy

St. Petersburg, Russia, June 6 (Jiji Press)--Japanese general trader Mitsui & Co. <8031> and state-linked Japan Oil, Gas and Metals National Corp., or JOGMEC, are slated to reach a basic agreement with Russian gas giant Novatek to invest in a Russian liquefied natural gas project in the Arctic, informed sources said Thursday.

Mitsui President Tatsuo Yasunaga will exchange memorandums of understanding with the Novatek side on Friday, on the sidelines of an international economic conference in St. Petersburg, Russia, from Thursday, according to the sources.

Japanese Prime Minister Shinzo Abe hopes to leverage Japanese investment in the Russian gas project, known as Arctic LNG 2, to push forward negotiations with Moscow to resolve a territorial row over four Russian-held islands.

The Japanese government will support the investment through JOGMEC.

The Japanese investment is expected to reach several hundred billion yen eventually.

[Copyright The Jiji Press, Ltd.]

Jiji Press