JOGMEC Provides Loan Guarantee for JAPEX’s Shale Gas
Development and Production Project in British Columbia, Canada
JOGMEC (President: Hirobumi Kawano) announced today that it signed loan guarantee agreements on 30th March, 2015, to support JAPEX Montney Ltd. (JML), a Canadian subsidiary of Japan Petroleum Exploration Co., Ltd.(JAPEX), for the development and production of shale gas resources in North Montney area of British Columbia, Canada.
JOGMEC’s guarantee will cover up to USD 375 million financed by Mizuho Bank Ltd., Tokyo-Mitsubishi UFJ, Ltd. and Sumitomo Mitsui Banking Corporation corresponding to 50% of a total of USD 750 million loan which will be co-financed with Japan Bank for International Cooperation to JML.
In April 2013, JML acquired a 10% interest from Progress Energy Canada Ltd., which is a fully owned subsidiary of Petroliam Nasional Berhad (PETRONAS), regarding the shale gas development and production project in North Montney area and from Pacific NorthWest LNG Ltd., which is also a subsidiary of PETRONAS, regarding a planned LNG project (PNW LNG) in British Columbia. Since March 2013, JOGMEC has been supporting the upstream project through equity financing to JML.
Shale gas production from the upstream project is to be exported to Japan as LNG through PNW LNG. It is anticipated that the entire project would contribute to diversify gas supply sources and, consequently, to reinforce Japan’s energy security.
JAPEX Montney Ltd. (JML)
|Date of Establishment
||7 March, 2013
||Calgary, Alberta, Canada
|President & CEO
||Mr. Mitsuru Saito
MGC Montney Holdings Limited*:10%
*A wholly owned subsidiary of MITSUBISHI GAS CHEMICAL COMPANY, INC.
|Date of Approval
||23 March, 2015
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.
Provisional Estimated Coverage of Loan Guarantee: USD 375 million
The inquiry about this page.
Public Relation Division