- Region: North America
- Energy and Natural Resources
- Overseas Investment Loans
August 31, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a loan agreement totaling up to 159.6 million U.S. dollars (JBIC portion) with Toyota Tsusho Corporation (Toyota Tsusho). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd.
- The loan will finance Toyota Tsusho to enable Toyota Tsusho Wheatland Inc., its Canadian wholly-owned subsidiary, to acquire from Encana Corporation (Encana), the largest natural gas producer in Canada, a 32.5% royalty interest in the coal-bed methane (CBM) fields located in the Wheatland area in Horseshoe Canyon, Alberta Province, and develop CBM.
- CBM is a form of natural gas located within coal beds and it is estimated that there may be up to 500 trillion cubic feet of natural gas (equivalent to 10 billion tons of liquefied natural gas (LNG)) in Alberta's coal reserves. Additionally, several projects for constructing LNG export facilities are currently being planned in British Columbia, a province on the western coast of Canada, in order to export LNG to Japan and other countries in Asia. In light of these developments, this loan will serve to raise Japan's ratio of independently developed energy resources by acquiring knowhow on CBM development as well as securing an interest in Canadian coal reserves. It is thereby expected to contribute to Japan's energy security.
- JBIC will continue to actively support Japanese businesses and promote the development and acquisition of energy and mineral resources by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function, thereby contributing to Japan's energy security.