PNG gas exports

Japan plans to double PNG, Australia gas imports
Alison Middleton Monday, 7 July 2014

JAPANESE Prime Minister Shinzo Abe has arrived in Australia to drive his government’s plans to double gas imports from Papua New Guinea and Australia to 36 million tonnes over the next five years. Abe is scheduled to hold talks with Australian counterpart Tony Abbott today and PNG leader Peter O’Neill on Wednesday to discuss “the importance of bilateral trade investment in natural gas”, according to Japanese media. The Japan News said the policy was formulated in consideration of the ongoing territorial disputes between China, Vietnam and the Philippines in the South China Sea. About 60% of Japan’s natural gas imports pass through the region, prompting a move to diversify the country’s supply route. The Osaka Gas Company and Tokyo Electric Power Company are among the key customers which will receive a long-term supply of LNG from Exxon Mobil PNG’s $19 billion PNG LNG project. The project’s first shipment left PNG bound for Japan on May 26 and was delivered ahead of schedule to TEPCO on the Spirit of Hela tanker. A second cargo was sold to CPC Corp Taiwan, with a third sale to TEPCO confirmed last month. The Japan News said Abe would praise the start of natural gas imports from the country as a “contribution to Japan’s energy security”, while the prime ministers were expected to agree to expand cooperation in natural gas development.