HOME >  News Releases >  2011 >  JOGMEC provides loan guarantee for Mitsubishi's Shale Gas Development Project in Canada

JOGMEC provides loan guarantee for Mitsubishi's Shale Gas Development Project in Canada

July 4, 2011

 Japan Oil, Gas and Metals National Corporation ("JOGMEC", President: Hirobumi Kawano) signed today a loan guarantee agreement to support Cordova Gas Resources Ltd.("CGR"), a Canadian subsidiary of Mitsubishi Corporation ("MC", President & CEO: Ken Kobayashi), in developing shale gas resources in the Cordova Embayment of northeastern British Columbia, Canada. 
 
 JOGMEC's guarantee will cover up to CAD$ 750 million financed by The Bank of Tokyo-Mitsubishi UFJ, Ltd., as part of the CAD$ 1 billion loan co-financed with the Japan Bank for International Cooperation.
 
 CGR has acquired a 50% interest in the natural gas project operated by Penn West Exploration, consisting of shale gas acreage, conventional natural gas assets and related natural gas facilities.
 JOGMEC earlier announced its indirect 7.5% shareholding in CGR through Shale Gas Investment B.V., an investment vehicle established by MC and holding a 67.5% share in CGR. The other shareholders of CGR include Chubu Electric Power Co., Inc (7.5%), Tokyo Gas Co., Ltd.(7.5%), Osaka Gas Co., Ltd.(7.5%) and Korea Gas Corporation (10%) 
 
 With enormous gas resources potential, this first JOGMEC-assisted unconventional gas development is expected to accelerate the diversification of gas sources and, consequently, to reinforce Japan’s energy security. 

Supplemental Remarks (Project profile)

(1)Corporate Data
Company Name Cordova Gas Resources Ltd.
Date of Establishment August, 2010
Head Office Calgary
President & Secretary Mr. Tetsuro Kuwabara

(2)Location
Cordova Embayment, British Columbia, Canada
Cordova Embayment
(3)Participating Interest
Permit Holder  ParticipatingInterest
Penn West Exploration (Operator)  50%
Cordova Gas Resources Ltd.  50%
(4)Estimated amount of guarantee provided by JOGMEC
CAD$ 750 million

The inquiry about this page.

Project DepartmentMatsumoto or Inui

Tel +81-3-6758-8218

Public Relation DivisionUematsu

Tel +81-3-6758-8106

Japan Organization for Metals and Energy Security
(JCN 4010405009573)

Toranomon Twin Building 2-10-1 Toranomon, Minato-ku, Tokyo 105-0001, JAPAN
TEL : +81-3-6758-8000

Copyright© Japan Organization for Metals and Energy Security All Rights Reserved.