JBIC To Loan Up To $700 Million To Mitsui & Co. Unit's Shale Gas Project
January 25 2011 - 3:35AM
Dow Jones News
Japan Bank for International Cooperation will loan up to $700
million to Mitsui E&P USA, a unit of Mitsui & Co.
(8031.TO), for the development of a shale gas project in which
Mitsui E&P has a 15.5% stake, a spokesman for Mitsui & Co.
said Tuesday.
The loan is JBIC's first financing of a shale gas project. The
Japanese state-owned bank said the loan would indirectly help
stabilize liquefied natural gas supply to Japan, as increased
natural gas output in the U.S. is likely to ease global competition
for LNG supplies.
Japan buys all its natural gas imports in the form of liquid due
to the lack of pipelines linking the island country to any major
gas producing regions.
Mitsui E&P last year acquired a 15.5% stake in Anadarko
Petroleum Corp.'s (APC) Marcellus shale gas project. Its share of
peak production from the Marcellus project is expected to be
360,000 million-460,000 million cubic feet a day.
The Mitsui unit's project development costs are expected to
reach $3 billion-$4 billion over 10 years, depending on the
progress of the work.
-By Mari Iwata, Dow Jones Newswires; 813-6269-2798;
mari.iwata@dowjones.com
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