Shares of Inpex climbed 3.7% to ¥3,401 on Wednesday following the announcement of a long-term liquefied natural gas arrangement with Abu Dhabi National Oil Co. The agreement, described by the company as a 15-year supply contract, commits Inpex to purchase roughly 1 million tons of LNG per year from the Ruwais LNG project in the Persian Gulf, with commercial operations at the project slated to begin in 2028.
In addition to the LNG supply deal, Inpex revealed on July 7 that Metropolitan CCS - the joint venture formed by INPEX CORPORATION and Kanto Natural Gas Development - has begun drilling a carbon capture and storage (CCS) appraisal well off the coast of Kujukuri in Chiba Prefecture, Japan. The company characterized the activity as appraisal drilling for CCS.
Market context was limited on the trading day, with the broader Japanese equity benchmark, the Nikkei 225, trading essentially flat to marginally lower. Despite the lack of a clear market-wide tailwind, Inpex was highlighted as one of the better-performing stocks within the index.
Details of the agreements and developments
- The LNG contract spans 15 years and sources product from the Ruwais LNG project in the Persian Gulf.
- Inpex's purchase commitment under the agreement is approximately 1 million tonnes of LNG annually.
- Commercial operations at Ruwais LNG are scheduled to commence in 2028.
- Metropolitan CCS, the JV between INPEX CORPORATION and Kanto Natural Gas Development, has initiated CCS appraisal well drilling off Kujukuri, Chiba Prefecture.
Market reaction
Investors responded to the combination of a multi-year supply commitment and renewed activity on carbon management with a notable intraday rise in Inpex shares, positioning the company among the stronger performers on the Nikkei 225 during the session.