JOGMEC guarantees loan for JAPEX’s BC shale gas development

JOGMEC informed that it signed a loan guarantee agreements on 30th March, 2015, to support JAPEX Montney, a Canadian subsidiary of Japan Petroleum Exploration, 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, Tokyo-Mitsubishi UFJ 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, JOGMEC said in a statement.

In April 2013, JML acquired a 10% interest from Progress Energy Canada, which is a fully owned subsidiary of Petronas, regarding the shale gas development and production project in North Montney area and from Pacific NorthWest LNG, which is also a subsidiary of Petronas, regarding a planned LNG project in British Columbia.

Shale gas production from the upstream project is to be exported to Japan as LNG through PNW LNG.

Image: PNW LNG