SEPTEMBER 29, 2022
Prime Minister Hon. James Marape has told the LNG Japan Corporation that Papua New Guinea has about 20-trillion cubic feet (TCF) in stranded gas fields, apart from the major LNG projects, waiting to be developed.
He said this in Tokyo on Tuesday (September 27, 2022) when inviting LNG Japan Corporation to invest more and diversify in PNG LNG.
He made the invitation to LNG Japan Corporation during a meeting with President and CEO, Kyo Onojima, and his delegation in Tokyo during his one-day visit to attend the state funeral of former prime minister Shinzo Abe and bilateral meeting with current Prime Minister Hon. Fumio Kishida.
PM Marape – who was accompanied by International Trade and Investment Minister Hon. Richard Maru, East Sepik Governor Hon. Allan Bird and PNG Ambassador to Japan H.E. Samuel Abal – said there were so many opportunities for LNG production in PNG as he invited LNG Japan Corporation.
LNG Japan Corporation was formed on October 1, 2001 on the foundation of LNG business long established by Sojitz Corporation (formerly known as Nissho Iwai Corporation) and business network established through solid trust from customers by Sumitomo Corporation.
“We have a lot of opportunities in upstream and downstream of LNG, as well as in stranded fields hanging around,” PM Marape told Onojima and his delegation.
“We have up to 20 TCF of stranded gas fields, and are looking for investors who can partner Kumul Petroleum Holdings Ltd (KPHL) and Mineral Resources Development Company (MRDC), with both companies having a combined value of K10 billion.
“MRDC represents the landowners, who are important stakeholders, and we also want to give them more opportunity to participate with investors.
“I appreciate the fact that LNG Japan Corporation already has an agreement with KPHL in the upstream business, as well as possibly venture into midstream, given that the stranded gas fields need to be mobilised.”
PM Marape said LNG Japan Corporation already had enough exposure to PNG’s LNG industry to know of business opportunities available in the country.
He previously had a meeting with LNG Japan Corporation in December 2019 in Port Moresby with then President and CEO, Hiroshi Kawahara, who is now Chairman of the company.
LNG Japan is studying feasibility of potential LNG-to-power projects in PNG, leveraging its long experiences in the LNG industry, including a small-scale domestic LNG sea transportation project in Indonesia.
It is also looking at producing methanol as a raw material for plywood manufacture, hence, contributing to downstream processing of logs.
LNG Japan, from the days of its predecessor, has over 40 years of experience in upstream development, financing, marketing, trading and shipping in the global LNG Industry.
LNG Japan and Kumul Petroleum entered into a joint venture agreement on June 7, 2017 (amended on August 2, 2018) to set up as unincorporated joint venture for marketing of spot and short-term cargoes from PNG LNG.
The company, together with JX Nippon Oil & Gas Exploration Corporation and Marubeni Corporation (Japanese consortium) and Kumul Petroleum entered into a memorandum-of-understanding on August 30, 2018, to jointly pursue any opportunities to participate in the Papua LNG Project, as equity participants and financiers
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