Description

The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed today a loan agreement amounting to up to USD850 million (JBIC portion) with Mitsubishi Corporation (MC). The loan is co-financed with a private financial institution, bringing the total co-financing amount to USD1.850 billion. In this joint project with Royal Dutch Shell plc of the UK and the Netherlands, Petroliam Nasional Berhad of Malaysia, and others, MC will build a natural gas liquefaction plant of a planned annual production capacity of 14 million tons in the province of British Columbia in Canada and produce and sell products including liquefied natural gas (LNG) produced from shale gas and other substances output in Canada. The loan is intended to finance, through MC, the development of the project. In the project, an LNG sales subsidiary of MC will sell LNG that is equivalent to 15% of the project’s production to Japanese utility companies, and therefore the project is expected to contribute toward securing stable supplies of LNG, which is an important energy resource for Japan. JBIC will continue to actively support the development of energy resources by Japanese companies and financially assist in the securing of a stable energy supply for Japan.