JOGMEC announced today that it will provide equity financing to INPEX Gas British Columbia Ltd. (IGBC), which, jointly established by INPEX CORPORATION and JGC Corporation, has acquired a 40% participating interest in British Columbia shale gas assets.
Following an in-principle agreement announced in November 2011, IGBC completed in August 2012 the acquisition of a 40% participating interest from Nexen Inc. with respect to the Nexen-operated shale gas development acreage in the Horn River, Cordova and Liard basins of northeast British Columbia, Canada.
JOGMEC investment in IGBC, covering up to 45% of its issued share capital, will be funded under the Fiscal Investment and Loan Program (“FILP”) for the first time, after a law permitting the application of FILP to natural gas development projects becomes effective on September 15, 2012.
While the Horn River gas production has already come on-stream, the full-scale development is to significantly expand the production capacity. IGBC and Nexen will also seek the opportunity to export the shale gas based Liquefied Natural Gas (LNG) to East Asia including Japan. It is expected that this project will accelerate the increase and diversification of LNG sources, and consequently reinforce Japan’s energy security.
LNG World News Staff, September 14, 2012; Image: Jogmec