Mitsubishi Corporation is boosting its equity stakes in one of the world’s single largest LNG-producing facilities in Malaysia after signing agreements with Malaysian state-owned oil and gas giant Petronas.
On Friday, Mitsubishi and Petronas announced the signing of agreements under which Mitsubishi Corporation will invest in the Malaysia LNG units Dua and Tiga over the next decade. The Japanese firm announced an extension of its 10% equity shareholding in MLNG Dua, and the reinvestment of a 10% equity shareholding in MLNG Tiga in ten-year deals beginning in 2024 and 2025, respectively.
Mitsubishi has been a key trading partner of Petronas’s LNG deliveries to Japan, the world’s second-largest LNG importer after China.
The Petronas LNG complex through partnerships and alongside Mitsubishi Corporation began LNG supply to long-term Japanese contract buyers in 1983.
Petronas LNG comprises four joint ventures of MLNG, MLNG Dua, MLNG Tiga, and PETRONAS LNG 9 with a production capacity of 29.3 million tons per annum (mtpa), making it one of the world’s largest LNG producers in a single location. The LNG complex has been a main LNG supplier to public and private sector customers in Japan.
Elsewhere in Malaysia, Mitsubishi Corporation has also participated in total of 10 gas upstream blocks in Sarawak and expanded its areas of investment in the country to the automotive, food, petrochemicals, metal, and steel sectors.
“Mitsubishi Corporation looks forward to providing continuous support in growing and nurturing access to global LNG market for PETRONAS’ future volumes with LNG being the fuel of choice in the age of energy transition,” the Japanese corporation’s president and CEO Katsuya Nakanishi said.
Earlier this month, Petronas reported a decline in its first-half profit amid continued market volatility, lower natural gas prices, and higher taxes paid.
Petronas is also faced with the prospect of lower earnings from natural gas as Sarawak, the biggest state in Malaysia, is set to take control of its natural gas assets as the state on the Borneo island is now looking for more autonomy from the federal government.
By Tsvetana Paraskova for Oilprice.com
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