Mitsubishi Corp. will start importing liquefied natural gas from Canada next month, marking the first time a Japanese firm has secured large-scale LNG supplies from the country as Asia’s second-largest economy seeks to reduce its dependence on traditional suppliers.
The trading house will receive 2.1 million metric tons annually from the $14 billion LNG Canada project in British Columbia, representing its 15% stake in the venture alongside Shell Plc, Malaysia’s Petronas, PetroChina Co. and Korea Gas Corp. The investment totals approximately $2.1 billion.
Shipments to Japan are expected by July, with full commercial operations beginning by year-end, according to a source familiar with the matter. The facility will produce 14 million tons annually.
The move comes as Japan scrambles to diversify energy sources following geopolitical tensions and China’s emergence as the world’s top LNG buyer. Japanese utilities are increasingly competing with Chinese companies for long-term contracts while domestic demand declines due to nuclear plant restarts and renewable energy growth.
This represents the first LNG project involving Japanese investment to begin operations in roughly six years. Previous ventures include Mitsubishi and Mitsui & Co.’s participation in Cameron LNG in Louisiana, and investments by JERA and Osaka Gas in the Freeport project, also in Texas.
The Canadian source offers geographic advantages with shorter shipping times to Asia compared to U.S. Gulf Coast facilities.
