The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today a loan agreement amounting to up to USD831 million (JBIC portion) with JERA Scarborough Pty Ltd (JERA Scarborough), an Australian company that is invested in by JERA Co., Inc. (JERA). The loan is co-financed with private financial institutions, bringing the total co-financing amount to USD1,231 million.
The loan is intended to finance the funds necessary for JERA Scarborough to acquire a 15.1% participation interest in the Scarborough gas field located off the northwest coast of Western Australia from Woodside Energy Group Ltd, another Australian company, and to develop the gas field.
Natural gas is an energy source that produces less greenhouse gases than other fossil fuels, which mitigates the environmental impact. Toward the realization of a decarbonized society and carbon neutrality, natural gas is attracting attention as a source of energy during the energy transition, and the growing global demand for LNG is projected to continue. In the Sixth Strategic Energy Plan, which was approved by the Cabinet in October 2021, the government of Japan regards the securing of a stable supply of natural gas for Japan and the improvement of the independent development ratio as crucial policy agenda items. The natural gas produced by the project is characterized by its low CO2 (less than 0.1%). Of the LNG produced from the natural gas, JERA will receive up to about 1.2 million tons a year, equivalent to its equity interest in the project. The loan supports JERA in procuring the LNG and will contribute toward securing long-term, stable supplies of LNG, which is an important energy resource for Japan, and diversifying LNG supply sources for Japan.
JBIC will continue to actively support the development of energy resources by Japanese companies and financially assist in the securing of a stable energy supply for Japan.
