Brunei LNG will begin supplying liquified natural gas to Japan Petroleum Exploration Co. (JAPEX) in April, as the business aims to stabilize its finances by increasing shipments to its largest export market.
Nikkei reports that Brunei supplies 6% of Japan’s LNG, ranking sixth in exports to the country following Australia, Malaysia, and others. Diversification of its energy sources has been considered crucial for Japan amid growing energy security concerns.
So far, Brunei LNG has supplied LNG to Japanese utility companies Tokyo Gas, Osaka Gas, and JERA, which is jointly owned by Tokyo Electric Power Company and Chubu Electric.
Brunei LNG presently obtains feedstock gas for LNG production from two gas resources, while Mitsubishi and Malaysia’s state-owned oil major Petronas are also involved in Brunei’s efforts to build a new gas field.
Global LNG markets have experienced shocks following Russia’s invasion of Ukraine, with a 27-year LNG trade contract signed between Qatar and China in November last year seen as an indication of increased interest in long-term contracts.
