JOGMEC said that it will provide equity financing to JAPEX Montney Ltd., established by Japan Petroleum Exploration Co., Ltd. (JAPEX), which will acquire a 10% interest of the natural gas blocks in North Montney, British Columbia.
JAPEX has entered into a Heads of Agreement with Petroliam Nasional Berhad (PETRONAS), the national oil and gas company of Malaysia, to participate in a natural gas development and production project and a planned LNG project in British Columbia, operated by PETRONAS through Progress Energy Canada Ltd. and its affiliates.
Subject to the completion of the transaction, JOGMEC will be a shareholder in JAPEX Montney Ltd., a company majority owned by JAPEX.
While JAPEX will be entitled to offtake 1.2 million tons per annum of LNG through its participation in this project, JOGMEC, as a governmental agency, expects JAPEX’s contribution with respect to further stable LNG supply and fuel cost reduction in Japan.
[mappress] LNG World News Staff, March 26, 2013; Image: Ziff Energy