ENEOS Boosts Stake in Papua LNG Project

ENEOS Holdings (5020.T) has announced plans to expand its stake in the Papua LNG project, a liquefied natural gas venture in Papua New Guinea. The company's resource development subsidiary, ENEOS Xplora, will acquire an additional 0.49% stake from TotalEnergies, increasing ENEOS's ownership from 2.58% to 3.07%. This move is aimed at stabilizing the company's supply chain by increasing LNG procurement that does not pass through the Strait of Hormuz.

The Papua LNG project plans to process gas from the Elk-Antelope field in Papua New Guinea's Gulf Province, with an expected annual production capacity of 5.6 million tons. Production is scheduled to begin in fiscal 2027. ENEOS Xplora has been engaged in LNG production in Papua New Guinea since 2014 and stated that the acquisition will strengthen its business foundation in the region.

The Strait of Hormuz is a key shipping route for Middle Eastern crude oil and LNG, with rising geopolitical risks causing concerns about navigation instability. By increasing its LNG interests in the Pacific region, ENEOS is advancing the diversification of its procurement sources.