Qatar to supply condensate to Japan’s Mitsui in 10-year deal (NYSEARCA:UNG)
Japan’s Mitsui (OTCPK:MITSF) (OTCPK:MITSY) said Sunday it signed a deal with Qatar to purchase 11M barrels of condensate per year for 10 years starting in April, as a hedge against potentially unreliable U.S. energy supply following the Biden administration’s pause on new licenses for liquefied natural gas export projects.
The deal includes an option to increase the volume of condensate QatarEnergy exports to Mitsui (OTCPK:MITSF) (OTCPK:MITSY) when additional volumes become available from Qatar’s North Field LNG expansion project.
Condensates are a by-product of the natural gas production process and often used in the production of gasoline.
Mitsui (OTCPK:MITSF) (OTCPK:MITSY) has said it is considering buying a stake in the North Field expansion project, which is expected to raise Qatar’s LNG production to 126M metric tons/year by 2027 from 77M tons/year currently.