Japanese Trading House Mitsubishi Corp Considers Investment in Alaska LNG Project
Japanese trading house Mitsubishi Corp is contemplating investing in a liquefied natural gas (LNG) project in Alaska, as revealed by Chief Executive Katsuya Nakanishi on Thursday. This potential investment decision will undergo a meticulous review process to assess its viability and potential benefits.
Recently, a delegation from Alaska visited Japan to provide insights to policymakers and engage with potential backers for the $44 billion natural gas project in the U.S. state. This initiative is aligned with President Donald Trump’s agenda to enhance U.S. gas exports and strengthen energy partnerships.
When questioned about Mitsubishi’s interest in the Alaska LNG project, Nakanishi acknowledged being approached and considering participation. However, he emphasized the importance of conducting comprehensive due diligence given the project’s history of proposals and the existing geopolitical landscape.
Key factors in evaluating the feasibility of the project include the significant distance to the West coast, the necessity of constructing liquefaction facilities, and the anticipated LNG demand in regions like Southeast Asia.
According to Alaskan officials, U.S. investors are expected to contribute primarily to the pipeline segment of the project, while equity participation from Japan and other Asian buyers may be linked to the offtake from the liquefaction plant facilitating gas exports.
In light of recent tariff announcements by President Trump impacting trade relationships, Nakanishi acknowledged potential opportunities arising from the tariffs but stressed the need for a cautious assessment of associated risks.
Bold Investment Plan and Strategic Outlook
Mitsubishi Corp unveiled its ambitious plan to invest a minimum of 4 trillion yen ($27 billion) over the next three years to drive growth and aims to achieve a net profit of 1.2 trillion yen by the 2027/2028 financial year.
As part of its new three-year management strategy, Mitsubishi intends to uphold its commitment to progressive dividends and flexible share buybacks, including a plan to repurchase up to 1 trillion yen of its own shares by March 31, 2026.
Over the next three years, the company plans to allocate approximately 1 trillion yen towards sustaining capital expenditure and more than 3 trillion yen towards growth investments. In scenarios with excess cash, Mitsubishi will evaluate allocation options considering investment opportunities and shareholder returns.
Regarding its domestic offshore wind projects, Mitsubishi acknowledged a 52.2 billion yen impairment charge in the nine-month period ending in December. The company anticipates reaching a resolution on these projects by summer without divulging further details.
For the current fiscal year, Mitsubishi forecasts a net profit decline to 700 billion yen but plans to increase its dividend by 10 yen per share to 110 yen. Notably, Warren Buffett’s Berkshire Hathaway holds a significant 9.67% stake in Mitsubishi Corporation.
As Mitsubishi navigates through evolving market dynamics and strategic investments, the company remains committed to sustainable growth and shareholder value creation in alignment with its long-term vision.
($1 = 147.4200 yen)
(Source: Reuters)