JX Holdings To Sell PNG LNG Project Stake To Marubeni
- JX Nippon Oil & Gas Exploration would sell a small stake in an ExxonMobil-led liquefied natural gas project in Papua New Guinea to trading house Marubeni Corp.
- The project, which is expected to produce 6.6 million tonnes per annum and come online in 2014, is a joint venture between ExxonMobil, Oil Search, Santos, JX Nippon Oil, and the Papua New Guinea government.
JX Nippon Oil & Gas Exploration Corp, a unit of Japan's JX Holdings, said on Monday it would sell a small stake in an ExxonMobil-led liquefied natural gas project in Papua New Guinea to trading house Marubeni Corp.
Japan is the world's largest LNG consumer, and its appetite for gas is rising as utilities burn it to compensate for the loss of nuclear power generation capacity after the March earthquake and tsunami shattered public trust in nuclear safety, preventing the restart of reactors shut for maintenance.
JX and Marubeni are set to sign a contract on the share transfer on Monday, an official at JX Nippon Oil said. The Nikkei business daily reported that Marubeni will pay around 23 billion yen for a 21 percent stake in Merlin Petroleum, but the official could not confirm that.
Merlin, owned about 99.3 percent owned by JX and the rest by Mitsubishi Corp, holds a 4.7 percent stake in the $15 billion Papua New Guinea LNG project.
Tokyo Electric Power will buy 1.8 million tonnes of LNG per year from the project for 20 years and Osaka Gas will buy 1.5 million tonnes, while China's Sinopec will buy 2 million tonnes per year.
The project, which is expected to produce 6.6 million tonnes per annum and come online in 2014, is a joint venture between ExxonMobil, Oil Search, Santos, JX Nippon Oil, and the Papua New Guinea government.
Papua New Guinea
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
a qualified investment adviser. More
Join 80,000 oil and gas professionals who receive our weekly newsletter.
You may unsubscribe at any time with one click.
Upcoming OilVoice Training Course
Introduction to Petroleum Systems
Summary Source Rocks, Maturity of Source Rocks, Migration of Petroleum, Reservoirs, Seals and Trapping are all reviewed with respect to their basic physical principles, relative timing and the manners in which they are predicted and evaluated. Duration and Training Method 1 day, lectures broken up ...
All OilVoice Training Courses