Marubeni acquires big stake in LNG project

MARUBENI Corp of Japan has acquired a 21% stake in Merlin Petroleum Co, an American firm which is 99% owned by JX Nippon Oil & Gas Exploration Corp through a subsidiary, to gain an interest in PNG’s first liquefied natural gas project as well as in oil and gas fields in the country.
Marubeni acquired 21% shares of Merlin Petroleum Co, which is a joint venture partner in the PNG LNG project.
More than 99% shares of Merlin had been held by JX Nippon Oil & Gas Exploration Corp through its subsidiary.
Merlin held oil and gas interests in PNG, including interests in the country’s first LNG project – the PNG LNG project utilising the gas to be produced from the fields in which Merlin participates and other oil and gas fields in PNG.
Japan Bank for International Co-operation (JBIC) and Nippon Export and Investment Insurance (NEXI) had supported Marubeni’s acquisition of Merlin’s shares through their provision of loan and insurance facilities respectively.
The PNGLNG project will transport natural gas from the oil and gas fields located in the Southern Highlands province and Western province in central PNG to a liquefaction plant which was under construction nearby Port Moresby, through more than 750km pipelines to be laid and liquefy the gas for exports.
Long-term sales and purchase agreements for 6.6 million tonne per annum of the LNG from the PNG LNG project had been executed with internationally reputable LNG buyers in Japan, China and Taiwan for 20 years.
PNG’s first LNG project, scheduled to be on stream in 2014, had been receiving the full support of the PNG government as a national project and is currently in progress.