Japan’s Mitsubishi is increasing its holdings in LNG projects in Malaysia

Mitsubishi Corporation is increasing its stake in one of the world’s largest LNG producing facilities in Malaysia after signing deals with Malaysia’s state-owned oil and gas giant Petronas.

On Friday, Mitsubishi and Petronas announced the signing of agreements under which Mitsubishi Corporation will invest in Malaysia’s Dua and Tiga LNG units over the next decade. The Japanese firm announced the extension of its 10% equity stake in MLNG Dua and the reinvestment of a 10% equity stake in MLNG Tiga in ten-year deals starting in 2024 and 2025, respectively.

Mitsubishi has been a key trading partner of Petronas’ LNG shipments to Japan, the world’s second-largest LNG importer after China.

The Petronas LNG complex through partnerships and alongside Mitsubishi Corporation began supplying LNG to Japanese long-term 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 tonnes per annum (mtpa), making it one of the largest LNG producers in the world in one location. The LNG complex has been the main supplier of LNG to public and private sector customers in Japan.

Elsewhere in Malaysia, Mitsubishi Corporation also participated in a total of 10 upstream gas blocks in Sarawak and expanded its investment areas in the country in the automotive, food, petrochemical, metal and steel sectors.

“Mitsubishi Corporation looks forward to providing continued support in growing and increasing access to the global LNG market for PETRONAS’ future volumes, with LNG being the fuel of choice in the era of energy transition,” said the Japanese corporation’s president and CEO, Katsuya Nakanishi.

Earlier this month, Petronas reported a drop in its first-half profit amid continued market volatility, lower natural gas prices and higher taxes paid.

Petronas also faces the prospect of lower natural gas revenues as Sarawak, Malaysia’s largest state, is set to take control of its natural gas assets as the Borneo island state now seeks more autonomy from by the federal government.

By Tsvetana Paraskova for Oilprice.com

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