In a move to bolster its energy portfolio, Mitsubishi, the Japanese conglomerate, is set to significantly deepen its involvement in Malaysia’s natural gas sector. The company plans to acquire a 10% stake in a key LNG facility operated by Petroliam Nasional, Malaysia’s state energy titan, with the deal set to span a decade. This isn’t Mitsubishi’s first rodeo with this project, as the company previously held a 4% stake before the contract expired in 2022. Now, with renewed vigor, Mitsubishi is eyeing a larger slice of the pie, aiming to secure this new stake by the close of fiscal 2024.
But Mitsubishi’s ambitions don’t stop there. The conglomerate, which already has a 10% stake in another LNG plant in Sarawak, is gearing up for an even bigger play. The company is planning to pour several hundred billion yen into these ventures, eyeing an extension of its contract for another decade come fiscal 2025. This strategic investment is poised to expand Mitsubishi’s liquefied natural gas production capacity in Malaysia by a substantial 60%, pushing it from 1.4 million tonnes to a robust 2.2 million tonnes annually.
Despite the scale of this expansion, Mitsubishi has remained tight-lipped about the details, declining to comment on the reports. Nevertheless, the company’s actions speak volumes, as it positions itself for a more commanding presence in the global LNG market, leveraging Malaysia’s rich energy resources to fuel its growth.
(Source: Nikkei Asia)
