Japanese oil company Idemitsu to invest $500 mil in British LNG firm

TOKYO — Major Japanese oil company Idemitsu Kosan Co says it will invest $500 million in MidOcean Energy, a liquefied natural gas firm headquartered in Britain and managed by U.S.-based investor EIG, to secure a stable energy supply.

The move, Idemitsu's first full-scale foray into LNG, comes amid growing concerns over disruptions to energy supply chains as tensions rise in the Middle East. The companies plan to finalize the contract by the end of the month.

"As its supply regions are geographically diverse, LNG offers significant strategic value from the perspective of reducing geopolitical risks and enhancing energy security," Idemitsu said in a press release, calling it a mid- to long-term growth area.

The firm also stressed the lower environmental impact of LNG compared to oil and coal, as it emits less carbon dioxide during combustion.

MidOcean Energy was established and is managed by EIG, which invests in energy and infrastructure industries.

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