Japan's Sojitz Buys into Spanish LNG Terminal

Sojitz Corporation says it has become the first Japanese trading company to become a co-owner in an LNG terminal operating business in Europe.

But it is not the first Japanese shareholder of such a business.

Sojitz said October 30 it has acquired First State Regasificadora (subsequently changing its name to Sojitz Regasificadora), which has a 15% stake in Regasificadora del Noroeste (commonly known as Reganosa), owner of the Mugardos LNG terminal in northwest Spain. The Mugardos terminal's other shareholders are Spain's Tojeiro Group (50.69%); the regional government of Galicia (24.31%) and Algerian state gas producer Sonatrach (10%).

Reganosa commenced operations at the Mugardos LNG terminal in 2007. LNG delivered to there is not only supplied to the domestic market in Spain, but also reloaded and exported to other parts of the world.  Reganosa also has plans to use the terminal as an LNG bunkering station for ships using LNG as marine fuel, Sojitz said. It added that it will contribute its LNG expertise and other businesses experience gained through a wide range of general trading operations, to support the further development of the Mugardos LNG terminal.

The Japanese company also plans to develop its global LNG business with a focus on LNG receiving and liquefaction terminals, and will look at expanding its LNG receiving terminal business into Asean and other countries in South Asia. 

(Photo credit: Sojitz)

Osaka Gas co-owns different Spanish terminal

Major Japanese utility Osaka Gas has held a stake in Saggas, owner of similar-sized LNG import terminal in southeast Spain. Its current indirect stake in that terminal, located at Sagunto near Valencia, is 20% (see 2nd graphic below). Whilst not primarily a trading company, Osaka Gas does trade LNG.

Sagunto is just to the south of, but just outside Catalonia, which announced its breakaway from Spain on October 27, but had its regional government taken over by the central government in Madrid. Spain's chief prosecutor on October 30 called for charges including rebellion to be laid against Catalan leaders. Leading gas utility, Gas Natural, moved its legal headquarters from the Catalan capital to Madrid October 6 to avoid an impact on its operations.

Equity structure of Saggas, owner of the separate Sagunto LNG import terminal - on the far side of Spain (Graphic credit: Saggas) 

 Shardul Sharma