JBIC Loans USD 126 Million for CBM Field Development in Australia

  • Project & Tenders

Surat Basin, QGC

The Japan Bank for International Cooperation (JBIC) signed a loan agreement totaling up to USD 126 million with Toyota Tsusho. The loan is cofinanced with The Bank of Tokyo-Mitsubishi and Sumitomo Mitsui Banking Corporation, which brings the overall cofinancing amount equivalent to approximately USD 210 million.

This loan will finance the development of a coal-bed methane (CBM) gas field in the Surat Basin in Queensland, Australia, in which Toyota Tsusho acquired 15% interests through its wholly owned Australian subsidiary, with Tokyo Gas, BG Group, and China National Offshore Oil Corporation (CNOOC).

CBM from the gas field will be sold to BG Group on a long term basis, as feed gas for the Queensland Curtis LNG Project (QCLNG) promoted by BG and Tokyo Gas. Tokyo Gas has concluded a long-term sales and purchase agreement with BG to take an annual delivery of 1.2 million-tons of LNG over 20 years starting in 2015. Also, Chubu Electric Power is expected to receive LNG, including LNG from the QCLNG project, based on a long-term purchase agreement with BG.

The loan, which financially supports an upstream development of overseas LNG projects of Japanese companies, will help to accumulate the knowledge and experience of CBM business and to expand business opportunities of Japanese companies in overseas CBM development. Thus, the loan contributes to Japan’s energy security through the increase of in-house development ratio by Japanese companies and the diversification of unconventional energy sources.

[mappress]
Press Release, April 15, 2014; Image: QGC

 

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