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The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on June 30 a loan agreement
*1 amounting up to USD1.2 billion (JBIC portion) with Japan International Finance Management (Tangguh) Corporation.
*2 JBIC’s loan to this project is cofinanced with financial institutions including Japanese banks.
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The project is carried out by Mitsubishi Corporation, INPEX CORPORATION, JX Nippon Oil & Gas Exploration Corporation, LNG JAPAN CORPORATION (a joint-subsidiary of Sojitz Corporation and Sumitomo Corporation), MITSUI & CO., LTD., and Japan Oil, Gas and Metals National Corporation (JOGMEC) (hereafter referred to as the “Japanese sponsors”), as well as overseas sponsors, such as BP p.l.c. The project will conduct additional development and production of gas fields located in the Berau Bay, West Papua Province, Indonesia, while expanding the existing gas liquefaction facilities (including construction of a third train). The Japanese sponsors have a combined total of about 46% interest in the gas fields, and the Kansai Electric Power Company, Incorporated will offtake 1 million tons per year of the liquefied natural gas (LNG) produced by the project (total production capacity : 3.8 million tons/year).
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The Japanese government continues to position LNG as a strategically important resource in the “Strategic Energy Plan” (decided by the cabinet in April 2014), as well as in the “Long-Term Energy Supply and Demand Outlook” (formulated in July 2015). With the weak commodity prices, delays in development and investment in LNG projects, which are necessary in the medium to long-term, have become a major concern. Given such circumstances, this support for the expansion of the LNG project which already has proven track record of delivering steady production and supplies, along with the advantage of being geographically close to Japan, will contribute to the steady supply of LNG for Japan.
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As Japan's policy-based financial institution, JBIC will continue to actively support the development and acquisition of energy resources by Japanese companies and financially assist the securing of steady energy supply for Japan, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
