Mitsui, Itochu, Jera to Import LNG from Oman

Economy

Tokyo, Dec. 27 (Jiji Press)--Major Japanese traders Mitsui & Co. <8031> and Itochu Corp. <8001>, and Tokyo-based power firm Jera Co. are likely to reach a basic agreement with Oman on a long-term contract to purchase liquefied natural gas from the Middle East country, it was learned Tuesday.

The Japanese companies are expected to buy over 2 million tons of LNG annually for about 10 years from 2025 under the contract, aiming to diversify supply sources amid the tightening supply-demand balance worldwide due to Russia's invasion of Ukraine, informed sources said.

Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura, who is visiting Oman, will basically agree on the matter with the country's energy minister at a meeting later on Tuesday, according to the sources.

Several Japanese companies other than Mitsui, Itochu and Jera are also in talks with Oman for a possible long-term LNG purchase deal.

If an agreement is struck in the negotiations, the overall amount of LNG purchases from Oman by Japanese firms is expected to top 3 million tons annually.

[Copyright The Jiji Press, Ltd.]

Jiji Press