Mitsubishi buys stake in Petronas LNG plant to boost portfolio

Mitsubishi buys stake in Petronas LNG plant to boost portfolio

The Japanese trading firm secures a 10% equity ownership in Malaysia LNG Tiga, valid for 10 years.

LNG has become a focus for Japanese firms like Mitsubishi, which view the fossil fuel as crucial in the transition to sustainable energy. (Bernama pic)
TOKYO:
Mitsubishi Corp will buy stake in a Malaysian natural gas liquefaction plant in an agreement with state-owned energy firm Petronas.

The Japanese trading firm will acquire a 10% equity shareholding in Malaysia LNG Tiga, valid for a decade starting this year, according to a statement from Mitsubishi and Petronas on Friday.

Mitsubishi also said it will extend its 10% equity shareholding in Malaysia LNG Dua, also for 10 years starting 2025. The financial value of the deal wasn’t disclosed.

Japanese companies like Mitsubishi are strengthening their LNG portfolio as many see the fossil fuel as critical in the energy transition.

Mitsui & Co announced in July that it will acquire a stake in an LNG project in the UAE. Japan’s trade ministry, which oversees energy-related policies, has also emphasised the importance of diversifying sources of LNG for energy security.

Malaysia LNG Dua and Tiga are part of a larger Petronas LNG Complex, which has a total production capacity of 29.3 million tonnes a year, according to the statement.

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