JOGMEC provides Equity Financing and Loan Guarantee for Mitsui’s participation in the Arctic LNG 2 Project and signed Share Purchase Agreement
June 29, 2019
Revised on June 29, 2019
Japan Oil, Gas and Metals National Corporation (“JOGMEC”) announced that it will provide equity financing and loan guarantee to Japan Arctic LNG B.V. (“Company”), a subsidiary of Mitsui & Co., Ltd. (“Mitsui”), and has signed the Share Purchase Agreement (“Agreement”) with PAO NOVATEK (“NOVATEK”) and Mitsui in relation to the sale of a 10% participation interest in the Arctic LNG 2 project in the Russian Federation.
Pursuant to the Agreement, the Company will acquire a 10% share of NOVATEK-led Arctic LNG 2, which will develop giant Utrenneye onshore gas and condensate field located on Gydan peninsula to export LNG from a 19.8 million tons per annum capacity plant.
As this world-class LNG project envisages export to the Asian market, Japan’s participation will largely contribute to stable LNG supply to Japan with wider diversification of import sources.
The signing of the Agreement took place on June 29, 2019 in the presence of the Prime Minister of Japan Shinzo Abe and the President of Russian Federation Vladimir Putin on the occasion of the G20 Summit in Osaka.
||Japan Arctic LNG B.V.
|Date of Establishment
||May 16, 2019
||Amsterdam, the Netherlands
||Mr. Taichi Nagino, Mr. Kosuke Hattori
|Shareholders after JOGMEC’s funding
||Mitsui 25% (Voting rights more than 50%)
JOGMEC 75% (Voting rights less than 50%)
|Japan Arctic LNG B.V.
|Date of Approval
||June 26, 2019
|Provisional Estimated Amount of Equity Financing
||Approx. JPY 290 Billion (up to 75% of equity)
|Provisional Estimated Coverage of Loan Guarantee
||Approx. JPY 45 Billion (up to 75% of loan)
Note：Approval has been made in accordance with JOGMEC’s technical, economic, and business-environment criteria and the consent from the Minister of Economy, Trade and Industry has been obtained.
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