Upstream Activities

Tangguh LNG Project, Indonesia

Tangguh LNG Project is located in the province of West Irian Jaya, Indonesia. 　The project is under development by unitizing the Muturi block, the Berau block and the Wiriagar block, and is expected to be the third major LNG project in Indonesia.

In 1999, We, LNG Japan, joined this project by acquiring 5% share in the Muturi block from BG International Ltd. and Cairns Limited. 　In 2004, we increased our share to 34.23% in the Muturi block (7.35% in the Tangguh LNG Project) by acquiring additional 29.23% interest from BG International Ltd.

In March 2005, we along with other Tangguh investors made a final investment decision to proceed with the development of the project. 　The project is on track with production to start in late 2008 with 7.6 million tons per annum production capacity from its initial two processing trains. The project has secured long-term sale and purchase agreements for the delivery of LNG to Fujian (China), Korea and the U.S. West Coast.

Tangguh LNG Project will contribute to stable supply of energy in the Asia-Pacific region as Indonesia's key LNG supply center.

East Kalimantan, Indonesia

We, LNG Japan, have equity in Universe Gas & Oil Company Inc. (UGO), who owns 4.375% share in the Sanga Sanga block in Eastern Kalimantan, along with Osaka Gas Co.,Ltd., Japan Petroleum Exploration Ltd., and Japan Energy Development Co., Ltd. UGO
In Sanga Sanga block, crude oil and natural gas are being produced from fields of Badak, Nilam, Mutiara, and Semberah.

RasGas Project, Qatar

In September 1997, We, LNG Japan, participated in the Ras Laffan LNG project (as known as “RasGas project”) which is led by Qatar Petroleum (Qatari state owned company) and ExxonMobil by investing and acquiring 3% equity interest in Ras Laffan Liquefied Natural Gas Company Limited. Upon participation, we arranged a US$300 million loan for Qatar Petroleum.

Ras Laffan Liquefied Natural Gas Company Limited supplies 4.8 million tons of LNG per year to Korea Gas Corporation from its LNG production trains 1 and 2, capable of producing a total of 6.6 million tons per year. 　Operations of the company have been smooth since its first shipment in August 1999. 　It also supplies LNG on a spot contract basis to LNG markets all over the world. 　As a shareholder of Ras Laffan Liquiefied Natural Gas Company Limited, we took part in by-product projects such as condensates and sulphur. 　In 2005, the company started production of liquefied helium in cooperation with Qatargas 1 and Qatargas 2, in which 6.6 million standard cubic feet of helium is produced every year.

RasGas projects source their feedstock gas through undersea pipelines from the North Field gas field located along the north-east of the State of Qatar to offshore Persian Gulf. 　This gas field, lying over 6,000 square kilometers, is one of the largest non-associated single-structure formation gas fields in the world with recoverable reserve of 900 tcf.

RasGas projects, as well as Qatargas projects which started production in 1996, is located at the Ras Laffan Industrial City which is one of the world's largest LNG production base with the largest production, storage, and loading facilities for LNG and other by-products. 　The State of Qatar expects to develop additional LNG projects and aims to boost its LNG production to 77 million tons per annum around year 2010. 　In line with our business commitments in the State of Qatar, we opened a liaison office in the capital city of Doha, where one Japanese representative along with 3 national staffs is stationed to expand our business relationships and opportunities in the country.

West Africa

Africa, a continent well known for its rich natural resources including natural gas, is one of the most promising regions for future developments in LNG supply. 　By capitalizing on our expertise in the international LNG business, we, LNG Japan, are expanding our focus out to West African projects, such as the newly emerging projects in Nigeria.