The Tokyo Electric Power Company, Incorporated ("TEPCO") has today executed an LNG
sale and purchase agreement with Papua New Guinea Liquefied Natural Gas Global
Company LDC, Seller of LNG from the Papua New Guinea LNG Project ("PNG LNG Project").
The agreement will take effect upon satisfaction of conditions, including Government
approvals and financing arrangements for the Project.
Under the agreement, TEPCO will purchase approximately 1.8 million tons of LNG per
year for 20 years starting from late 2013/2014. The PNG LNG Project will have an
annual supply capacity of approximately 6.6 million tons of LNG.
TEPCO considers that the PNG LNG Project is one of the most promising projects
expected to start-up by the mid-2010s, and that the overall terms and conditions of
the agreement are attractive for both parties.
The PNG LNG Project is an integrated development which includes gas production and
processing facilities, onshore and offshore pipelines and liquefaction facilities.
Participating interests are ExxonMobil (through various affiliates, including Esso
Highland Limited as Operator) 41.5%, Oil Search 34.0%, Santos 17.7%, Nippon Oil 5.4%,
Mineral Resources Development Company 1.2%, and Petromin PNG Holdings Limited 0.2%.
(Participation will change when the PNG state nominees join as equity participants
at a later date).
The PNG LNG Project will be the 11th LNG project from which TEPCO has procured LNG
under long-term contracts, and will contribute to the diversification of TEPCO's LNG
supply sources.
Outline of the agreement:
1. Seller: Papua New Guinea Liquefied Natural Gas Global Company LDC
2. Buyer: TEPCO
3. First Cargo: late 2013 to 2014
4. Contract Period: 20 years
5. Annual Contract Quantity: approximately 1.8 million tons in normal years
Appendix (PDF 20.4KB)