- Region: Oceania
- Energy and Natural Resources
- Overseas Investment Loans
September 27, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a loan agreement amounting up to 93 million U.S. dollars (JBIC portion) with Merlin Petroleum Company in the United States, a subsidiary of JX Nippon Oil & Gas Exploration Corporation (JX NOEX) and Marubeni Corporation (Marubeni). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Corporate Bank, Ltd., and Sumitomo Mitsui Banking Corporation.
- This loan is intended to finance development funds in a PNG LNG Project in Papua New Guinea (PNG) where JX NOEX, Marubeni, Exxon Mobil Corporation in the United States, Oil Search Limited in PNG, and Santos Limited in Australia have been jointly undertaking a PNG LNG Project for developing gas fields, laying pipelines and constructing liquefaction facilities to produce 6.6 million tons of liquefied natural gas (LNG) per year. About one half of the LNG produced in this project is expected to be supplied to Japan. Regarding this project, JBIC has already signed loan agreements on the project finance for the project companies, and the acquisition of interests by Marubeni and JX NOEX in December 2009, November 2011 and December 2011, respectively.
- The global demand for LNG is projected to greatly increase over the medium and long term, due to growing demand in emerging markets and to increasing awareness of the environment. It is therefore all the more important for Japan to diversify supply sources to ensure a stable supply of LNG. Under these circumstances, supporting Japanese companies for developing important natural resources such as LNG in this project has significant implications for securing a stable LNG supply to Japan.
- JBIC will continue to support the development and acquisition of interests in natural gas and crude oil, etc. by Japanese companies, thereby contributing to Japan's energy security.