Japanese LNG project developer Inpex will reorganize its natural gas business operations in the country by establishing a domestic energy supply & marketing division.
The new division, effective April 1, 2017, will be established through the reorganization of its existing oil & gas business division 2 and gas supply & infrastructure division.
Inpex said in its statement on Monday that the reorganization reflects the company’s response to changes in the natural gas business environment in Japan, including growing competition in the Japanese natural gas market triggered by the full liberalization of the gas retail market that will come into effect in April this year.
The company intends to respond more flexibly to the changing environment through its new organization and also to strengthen its natural gas business
operations in Japan.
Inpex aims to achieve a domestic gas supply volume of 2.5 billion cubic meters per year in the early 2020s, and 3 billion cubic meters per year in the longer-term.
In its effort to reach the growth target, the company expanded its domestic natural gas supply infrastructure including starting operations at Naoetsu LNG terminal in December 2013 and extending its natural gas trunk pipeline network with the operational startup of the Toyama Line in October 2016.
In addition to the establishment of the new division, the company has decided to sell all its shares in Inpex Natuna, a unit that holds a 35 percent participating interest in South Natuna Sea Block B in Indonesia, to PT Medco Daya Sentosa (Medco), a unit of PT Medco Energi Internasional.
Inpex began production of oil from the block almost 40 years ago, with natural gas production starting in 2001, however, Inpex Natuna’s contribution to the company’s income and cash flow is expected to become limited which is why the company decided to sell its shares in the unit.