Mitsui, a Japanese trading firm, is nearing the acquisition of a stake in the second phase of QatarEnergy’s North Field expansion.
The potential deal aims to enhance Japan’s energy security by securing a reliable supply of liquefied natural gas (LNG) amidst growing electricity demand driven by artificial intelligence (AI) developments, reported Reuters, citing five sources with knowledge of the matter.
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Details regarding the size and value of Mitsui’s prospective stake remain undisclosed.
Qatar, the world’s second-largest LNG producer following the US, seeks to strengthen its position within Japan’s energy sector.
This follows a recent 27-year LNG supply agreement between Qatar and JERA, Japan’s leading power producer.
Despite the advanced negotiations, neither QatarEnergy nor Mitsui have issued comments on the matter, and sources requested anonymity due to the matter’s confidential nature.
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By GlobalDataThe North Field project is anticipated to become the world’s largest LNG initiative, with production expected to rise by 64%, reaching 126 million metric tonnes per annum (mtpa) by 2027, up from the current 77mtpa.
The second phase, known as North Field South, will contribute an additional 16mtpa at an estimated cost of $17.5bn, as outlined in a report by the Japan Organization for Metals and Energy Security.
QatarEnergy possesses a 75% stake in North Field South. TotalEnergies and Shell each hold a 9.375% share, whereas ConocoPhillips has a 6.25% interest.
The potential agreement would extend Mitsui’s collaboration with QatarEnergy, building on their earlier 10-year condensate supply contract set for 2024.
Additionally, Malaysian firm Petronas has shown interest in obtaining equity in the project. However, no further details were provided, and Petronas has not provided any comments regarding the matter.
In terms of supply distribution, Mitsui stands to receive part of Qatar’s LNG through JERA’s recent purchase agreement.
Japanese regional utility firms Tohoku Electric Power and Kyushu Electric Power have also shown interest in acquiring Qatari LNG via JERA. Both companies have refrained from commenting on these developments.
