Oman inks LNG deal with Japan to export 2.35m tonnes annually
The contracts, effective as of 2025, will boost Japan's energy security
By News Desk - December 27 2022

Sultan of Oman, Haitham bin Tariq Al Said, with Japanese delegation (Photo Credit: Oman News Agency)

According to Oman News Agency, Oman LNG, the leading gas producer in West Asia, signed a long-term agreement with Japan on 27 December to export 2.35 tonnes of liquefied natural gas (LNG) annually to Japan’s main electricity generator JERA, along with trading houses Mitsui & Co and Itochu Corp.

The contracts will be effective as of 2025 and will run for over five and 10 years, granting Japan greater energy security.

Japanese news broadcaster NHK disclosed that the agreement was signed by Japan’s Trade and Industry Minister Yasutoshi Nishimura, who is currently visiting the Gulf country.

The Sultan of Oman Haitham bin Tariq met with Nishimura in the Al-Baraka Palace and received a written letter from Japanese Prime Minister Fumio Kishida, which tackled advanced relations and common interests between the two nations.

Times of Oman reported that the signing ceremony, which was attended by Omani Minister of Energy and Materials, Eng. Salim Nasser al-Aufi, Japanese Ambassador to Oman Jota Yamamoto and other delegation members, also covered joint cooperation in various other fields.

Itochu Corporation, one of Japan’s largest trading companies, already has a 20 year contract with Oman LNG for 0.7 million tonnes annually that is due to expire in 2025. The newly signed agreement involved discussions around extending the contracts for long-term cooperation.

In 2021, Japan imported 1.9 million tonnes from Oman, making up 2.6 percent of its total LNG imports.

Representatives of the Sultanate of Oman were also present in Saudi Arabia on 9 December for the historic summit between China and the GCC states, during which Chinese President Xi Jinping called on China and GCC nations to be partners in promoting unity, development, and security in West Asia.

Just five days earlier, on 22 December, Japan’s Organization for Metals and Energy Security (JOGMEC) renewed its agreement with oil giant Saudi Aramco to maintain Toyko’s rights to store crude oil in Saudi Arabia for the coming three years.

Global LNG supply has recently been compromised after Western countries imposed sanctions on Moscow following Russia’s invasion of Ukraine.

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