Japanese to purchase country’s LNG for global market

A JAPANESE buyer, who was also a participant of the PNG Petroleum and Energy Summit in Port Moresby this week, will buy liquefied natural gas from the country to sell on global markets.
The first step in achieving that was sealed yesterday after LNG Japan Corporation signed the heads of agreement with Kumul Petroleum Holdings Ltd (KPHL) yesterday.
LNG Japan and Kumul Petroleum will form a joint venture aimed at purchasing and selling the country’s LNG.
KPHL is an existing shareholder  in the multi-billion kina PNG LNG project and under this venture, it would enter the LNG market.
Managing director Wapu Sonk said: “Signing (heads of agreement) is critical to Kumul Petroleum taking a step forward in taking part in marketing some of the LNG together with partner, LNG Japan.
“The heads of agreement will allow the companies to working on the joint venture going forward.
“The long-term contracts are fixed but there is opportunity in taking up some of the spot market cargoes and selling it to Japan and other global markets.
“LNG Japan has experience in the business and KPHL as a shareholder in the PNG LNG project, we would like to work together and build on each other’s experience.”
LNG Japan Corporation’s president and chief executive officer Norikazu Onishi said the firm was keen on cooperating with the country in trading but also other areas such as education.
Petroleum and Energy Minister Nixon Duban praised LNG Japan and KPHL for the partnership.