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The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed on July 1 a loan agreement amounting up to EUR125 million (JBIC portion) with Japan Arctic LNG B.V. (J-ARC), a Dutch entity. The loan is co-financed with the private financial institutions.
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This loan is intended to provide necessary funds for J-ARC, which is established by Mitsui & Co., Ltd. (Mitsui) jointly with the Japan Oil, Gas and Metals National Corporation (JOGMEC), to acquire a 10% stake of Arctic LNG 2 LLC (Arctic LNG 2) in Russia. J-ARC will acquire the stake from PAO NOVATEK in Russia.
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Arctic LNG 2 plans to construct and operate an LNG plant (annual production capacity of 19.8 million tons) on the Gydan Peninsula in the Yamalo-Nenets Autonomous District of Russia. J-ARC will acquire a 10% interest in this project through the acquisition of equity and Mitsui & Co. plans to offtake LNG proportioned to the equity stake. This will contribute to the stable supply of LNG for Japan.
- In addition, the LNG produced by this project is scheduled to be shipped though the Northern Sea Route and sold in both markets in Asia and Europe, two major areas for LNG demand. Support for this project will thus contribute to establishing an LNG value chain in Asia.
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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 securing of a steady energy supply for Japan, by drawing on its various financial instruments for structuring projects and performing its risk-assuming function.
