Tokyo, 11 July, /AJMEDIA/
Japanese trading house Mitsui & Co. said Thursday it will buy a 10 percent stake in a $5.5 billion liquefied natural gas project in the United Arab Emirates as part of efforts to ensure a stable supply of the natural resource for Japan.
The project, which will start production in 2028, is expected to produce up to 9.6 million metric tons of LNG annually, Mitsui & Co. said. The trading house is investing about $550 million through its subsidiary in the Netherlands.
The natural gas liquefaction project is led by Abu Dhabi National Oil Co., which will maintain a 60 percent stake, with international oil majors BP Plc, Shell Plc and TotalEnergies SE respectively acquiring 10 percent stakes.
Demand for LNG is on the rise globally as it produces less carbon dioxide than coal and oil when burned.
The joint project will mark the Japanese company’s first investment in a LNG project in five years.
The trading house took part in the Arctic LNG 2 project in Russia in 2019, but the company has not been able to start procurement of LNG due to the U.S. sanctions on Russia over its war in Ukraine.
