Oman LNG has agreed to supply liquefied natural gas (LNG) to three Japanese companies starting from 2025 in binding agreements signed between parties Tuesday, state-run Oman News Agency (ONA) reported.
As part of the long-term contracts, which range from five to 10 years, Oman LNG will produce and deliver LNG to Japan’s electricity generator JERA and trading houses Mitsui & Co and Itochu Corporation.
Oman LNG is expected to export 2.35 million metric tons per annum to the three Japanese firms.
JERA said it agreed to purchase up to 12 cargoes, or about 800,000 tons, of LNG per year from Oman LNG for 10 years starting in 2025.
“LNG procurement competition has been intensifying, and thus, stable procurement of fuel in a timely manner in line with the domestic electricity supply-demand situation is needed to secure a stable supply of energy in Japan,” said JERA in a separate statement Tuesday following the deal.
Meanwhile, Itochu Corporation has been Oman LNG’s buyer of natural gas since 2006, with an existing contract until 2024, according to Oman LNG’s website.
JERA and Mitsui & Co would join Itochu in its list of buyers, which also includes Korea Gas Corporation (KOGAS), Osaka Gas of Japan, BP Singapore, and Oman’s oil firm OQ.
KOGAS accounts for the largest annual gas procurement of 4.1 million tons among these buyers, according to data published on Oman LNG’s website
