Japan’s Mitsui & Co is close to acquiring a stake in the second phase of QatarEnergy’s giant North Field liquefied natural gas (LNG) expansion, as it seeks to secure stable long-term gas supplies, Reuters reported, citing sources familiar with the matter.

If completed, the deal would strengthen Japan’s energy security at a time when electricity demand is expected to rise sharply. For Qatar, the investment would further cement its position in Japan’s energy mix. The country is the world’s second-largest LNG producer after the United States and earlier this week signed a 27-year LNG supply agreement with JERA, Japan’s largest power generation company, highlighting its expanding role in supplying Asian markets.

Sources told Reuters that discussions between Mitsui and QatarEnergy are at an advanced stage, with the two sides finalising terms. However, details such as the size of the stake and its value have not yet been disclosed.

QatarEnergy did not respond to a request for comment, while Mitsui declined to comment on the reported talks, said Reuters.