Mitsui to Join LNG Project in Arctic Ocean off Russia

Economy Science Technology

Tokyo, June 29 (Jiji Press)--Major Japanese trader Mitsui & Co. <8031> officially announced Saturday that it and government-linked Japan Oil, Gas and Metals National Corp., or JOGMEC, will jointly invest in a planned Russian-led liquefied natural gas project in the Arctic Ocean along the Russian coast.

The Japanese government has shown expectations for Mitsui's participation in the large-scale project as a centerpiece of the country's economic cooperation for Russia.

Mitsui President and Chief Executive Officer Tatsuo Yasunaga signed the deal on Saturday, when Japanese Prime Minister Shinzo Abe and Russian President Vladimir Putin held a bilateral meeting in Osaka on the fringe of the two-day Group of 20 summit in the western Japan city that ended the same day.

Japan Arctic LNG BV, a Dutch joint venture owned 75 pct by JOGMEC and 25 pct by Mitsui, will acquire a stake of 10 pct in Arctic LNG 2 LLC, the operator of the project, for which total investment is expected to reach up to 23 billion dollars, according to the trader.

After the Japanese participation, Arctic LNG 2 will be owned 60 pct by major Russian natural gas producer Pao Novatek, and 10 pct each by French energy giant Total SA, a subsidiary of China National Petroleum Corp. and a unit of China National Offshore Oil Corp.

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