- Region: North America
- Energy and Natural Resources
- Overseas Investment Loans
August 23, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a loan agreement totaling up to 180 million U.S. dollars (JBIC portion) with INPEX CORPORATION (INPEX). The loan is cofinanced with private financial institutions. The overall cofinancing amounts to 300 million U.S. dollars.
- This loan will finance INPEX Gas British Columbia Ltd. (IGBC), which was jointly set up by INPEX and JGC Corporation, to acquire 40% interests in shale gas projects in the Horn River, Cordova and Liard basins located in British Columbia, owned by NEXEN Inc.(NEXEN), a Canadian oil and natural gas exploration and production company, and to develop and produce shale gas with NEXEN. This is the first shale gas development and production project in which INPEX will participate.
- Canada is endowed with vast shale gas reserves and, given its geography, great potential as a new liquefied natural gas (LNG) supplier for the markets in the Asia-Pacific region. With these projects, the possibility of producing LNG from shale gas and exporting the product to Japan and East Asian countries is also currently under consideration. The fact that INPEX acquires natural gas interests in Canada through participation in these projects will help Japanese firms acquire knowhow on shale gas development and increase the ratio of energy resources independently developed by Japanese firms. Thus, it is expected to contribute to Japan's energy security.
- JBIC will continue to actively support Japanese businesses that promote the acquisition of interests and development of energy resources such as natural gas by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function.