2013

Memorandum of Understanding for Vladivostok LNG Project Signed

Jun. 24. 2013
Marubeni Corporation

Japan Far East Gas Co., Ltd. ( “JFG”), a company partly owned by Marubeni Corporation (“Marubeni”), has signed a Memorandum of Understanding (MOU) regarding the natural gas liquefaction project in the Vladivostok area with Russia’s state-owned gas company Gazprom. The MOU was signed on June 22, 2013 in St. Petersburg, Russia.
JFG and Gazprom conducted a joint feasibility study (FS) for the natural gas utilization project in the Vladivostok area during 2011 and 2012. Following the result of this study, an MOU was signed between JFG and Gazprom regarding discussions on foundation of a joint project company as well as joint marketing activity in Japan, which would contribute to the realization of the Vladivostok LNG project.
Realization of this project is considered to be very important for the stable LNG supply to not only Japan but also to the other Asian countries, and will contribute to the diversification of Russia’s gas (LNG) export sources.

 

<About Japan Far East Gas Co., Ltd.>
Shareholder composition:

Marubeni Corporation (20%)
ITOCHU Corporation (32.5%)
Japan Petroleum Exploration Co., Ltd. (32.5%)
INPEX Corporation (10%)
ITOCHU Oil Exploration Co., Ltd. (5%)

 

 Reference
Gazprom is a Russian state-owned gas company and the largest gas producer in the world. In 2012, its annual natural gas production was 487.0 billion cubic meters, and its exports were 203.2 billion cubic meters.
In 2011, JFG and Gazprom implemented a joint FS for natural gas utilization in the Vladivostok area, as well as transportation and sale of natural gas and gas-chemical products from the Vladivostok area to potential buyers in countries of Asia-pacific region. On June 24, 2012, the Ministry of Economy, Trade and Industry of Japan and the Energy Ministry of the Russian Federation signed a memorandum regarding cooperation in the Vladivostok LNG Project. On September 8, 2012, the Agency for Natural Resources and Energy of Japan’s Ministry of Economy, Trade and Industry and Gazprom signed a MOU recognizing further cooperation in promotion of the Vladivostok LNG Project. On February 21, 2013, Gazprom took the investment decision on the Vladivostok LNG Project.
The MOU signed between JFG and Gazprom is based on the above-mentioned chain of events.

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