Japex to acquire 10 % in Petronas Pacific Northwest LNG and a shale gas project in Canada

Japan Petroleum Exploration (Japex) today agreed to acquire a 10-per cent stake in Malaysia's state-run Petroliam Nasional Berhad (Petronas) Pacific Northwest LNG and a shale gas project in Canada.

The companies did not reveal the financial terms of the deal, but Petronas is estimated to have invested between $9 billion-$11 billion in the LNG project, comprising two plants with an annual capacity of 6 metric tons each.

Japex will acquire 10 per cent in the Pacific Northwest LNG project to be built in the port of Prince Rupert in Canada's British Colombia province the port of Prince Rupert, and also a 10 per cent stake in a shale gas field in the North Montney area of British Columbia.

Japex, a Tokyo-based a hydrocarbon exploration, production and transportation company, will buy 1.2 million tons a year of LNG from the plant, which is equivalent to its 10 per cent interest and ship it to Soma LNG receiving terminal it plans to build in Fukushima prefecture in northern Japan.

Through this deal, Japex said that it will be able to secure long-term natural gas import from Canada into Japan and help diversify Japan's LNG import, contributing to improve energy supply.

Japan is currently the world's biggest importer of LNG.

Japex added that it would planned to develop domestic natural gas infrastructures for a solid supply system, including planned Soma LNG receiving terminal and related pipeline project.

The Pacific Northwest LNG project was part of the $5.2-billion acquisition by Petronas last year of Canada's Progress Energy Resources.