(Bloomberg) -- 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 United Arab Emirates. Japan’s trade ministry, which oversees energy-related policies, has also emphasized 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 tons per year, according to the statement.
--With assistance from Dan Murtaugh.
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