By Kosaku Narioka
Mitsui & Co. plans to invest hundreds of millions of dollars in a gas-field-and-pipeline project in Vietnam as part of efforts to strengthen its natural-gas business.
The Japanese trading company said Friday that it signed contracts for a development project in Vietnam, known as Block B, comprising a gas field and a pipeline to a thermal power plant.
Mitsui said its subsidiaries' share of the project's development costs, mainly for offshore installations and pipeline construction, will be about $740 million.
The trading company said Mitsui Oil Exploration, its wholly owned unit, had been participating in the project from the exploration phase. Other partners include Vietnam Oil & Gas Group, PetroVietnam Gas and Thailand's PTT Exploration & Production.
The project is estimated to have a production capacity of 490 million cubic feet a day, with production scheduled to begin by the end of 2026, it said.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
03-29-24 0218ET
