Energy and Natural Resources Finance for the World’s Largest-scale LNG Project
Supporting Japanese Gas Utility’s Participation in Energy Resource Development Project

  • Area: Oceania
  • Energy and Natural Resources

An artist rendering of the liquefaction plant

The global demand and supply balance of liquefied natural gas (LNG) is projected to become tighter over the medium and long term due to increasing demand in emerging countries. Australia, a country endowed with abundant gas reserves and political and economic stability, has come to play an increasingly significant role as an LNG supply source for Japan. Under this situation JBIC signed a loan agreement totaling up to 102 million dollars with Tokyo Gas Gorgon Pty Ltd. (TGG), a wholly owned subsidiary of Tokyo Gas Co., Ltd. (Tokyo Gas) incorporated in the Commonwealth of Australia.
This is one of the world’s largest-scale LNG projects, with six participating parties: Tokyo Gas (through TGG), Chevron Corporation (Chevron), Exxon Mobil Corporation, Royal Dutch Shell Plc, Osaka Gas Co., Ltd. and Chubu Electric Power Co., Inc. The parties plan to develop large-scale gas fields including Gorgon and Jansz on the northwest coast of the state of Western Australia, and transport gas through an undersea pipeline to a liquefaction plant to be constructed on Barrow Island located in the same state. The plant is expected to produce and sell 15 million tons of LNG annually from the year 2014.
The loan finances TGG for acquiring 1.0% interest of the project from Chevron and for participating in its development.Tokyo Gas offtakes 1.1 million tons of LNG a year from the project, which amounts to about 10% of the company’s yearly LNG purchase. In addition, Tokyo Gas also has rights to take delivery of about 150 thousand tons of LNG volume commensurate with its participating interest. JBIC supports Japanese firms in acquiring interests in crude oil and natural gas by participating in / committing to these projects, thereby contributing to Japan’s energy security.

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