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JOGMEC provides loan guarantee for Mitsubishi Corporation’s
Shale Gas Development Project in the Montney land in Canada
JOGMEC provides loan guarantee for Mitsubishi Corporation’s
Shale Gas Development Project in the Montney land in Canada
PDF version of this page (106 KB)August 13, 2012
JOGMEC (President: Hirobumi Kawano) announced today that it signed loan guarantee agreements on 10th August, 2012 to support Cutbank Dawson Gas Resources Ltd. ("CDGR"), a Canadian subsidiary of Mitsubishi Corporation ("MC"), for the development of shale gas resources in the Montney land of northeastern British Columbia, Canada.
JOGMEC’s guarantee will cover up to CAD$ 1,950 million financed by The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mizuho Corporate Bank, Ltd., corresponding to 75% of a total of CAD$ 2,600 million loan they will co-finance with Japan Bank for International Cooperation to CDGR.
In February 2012, CDGR subscribed for a 40% partnership interest in the Cutbank Ridge Partnership. Encana Corporation, the largest natural gas producer in Canada, is the operator and managing partner of the partnership to develop certain undeveloped Montney land in British Columbia, plus additional potential lands tapping the Cadomin and Doig geological formations.
JOGMEC earlier announced its financial supports to another MC’s shale gas development project in the Cordova Embayment in British Columbia, operated by Penn West Exploration, where MC’s subsidiary, Cordova Gas Resources Ltd.(“CGR”), holds a 50% interest.
Separately, MC, together with Shell Canada Limited, Korea Gas Corporation, and PetroChina Company Limited, announced they are jointly developing the LNG Canada project, a proposed liquefied natural gas (LNG) export facility near Kitimat, British Columbia, with the capacity to initially produce twelve million tonnes of LNG annually.
JOGMEC-assisted shale gas development projects through CDGR and CGR are expected to supply the LNG Canada project for the export to Japan, that could accelerate the diversification of gas sources and, consequently, to reinforce Japan’s energy security.
Background Information
1 Corporate Data
Cutbank Dawson Gas Resources Ltd. (CDGR)
2 JOGMEC Assistance
Provisional Estimated Coverage of Loan Guarantee: CAD$ 1,950 million
Cutbank Dawson Gas Resources Ltd. (CDGR)
| Date of Establishment | 31 January, 2012 |
|---|---|
| Head Office | Calgary, Canada |
| CEO | Mr. Shinya Miyazaki |
| Shareholder | Shale Gas Investment Canada Ltd. (MC’s Canadian subsidiary) |
| Date of Approval | 2 August, 2012 |
|---|---|
| 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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