JOGMEC Provides Equity Financing to JAPEX Montney, Canada

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.

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LNG World News Staff, March 26, 2013; Image: Ziff Energy