Japanese multinational Mitsubishi and Mitsubishi UFJ Financial Group (MUFG), the largest bank in Japan plan to rescue a global engineering company Chiyoda with a $1.4 billion lifeline, Nikkei Asian Review reports. Chiyoda has incurred heavy losses after a hurricane hit its Cameron LNG project in Louisiana.
Mitsubishi has a 33.4 percent stake in the company and will provide $1.36 billion of the total lifeline. This will be possible through a private placement of new preferred shares and loans, the Nikkei report said. Mitsubishi had helped the engineering company twice already.
As part of Mitsubishi, MUFJ will provide additional financing to the company.
Chiyoda specialises in oil and gas midstream for gas processing and LNG, downstream refinery and petrochemicals facilities design and construction. Headquartered in Japan, the company has a strong presence in the United States, Canada, Latin America, Middle East, Africa, Russia, Florida State University, South East Asia, and Australia.
Of late, there is a popular demand for natural gas owing to a global shift from coal. Royal Dutch Shell predicted the global LNG trade to rise 11 percent to 354 million tonnes this year. In addition, Mitsubishi also expects similar growth resulting in an increasing number of LNG projects.