Page 8 - AsiaElec Week 40 2022

AsiaElec GAS GENERATION AsiaElec

PNG offers Japan priority access

to new gas fields, LNG projects

JAPAN PAPUA New Guinea (PNG) is offering Japa- sector, through JX Holdings’ shareholding in
nese companies priority access to invest in new PNG’s largest resource project, the PNG LNG
gas fields and LNG projects as part of ongoing export terminal operated by ExxonMobil.
trade talks between the two countries focused Australia’s Santos confirmed last week it had
on energy security, PNG Prime Minister James received a $1.4bn offer from PNG’s national oil
Marape has said on September 27, according to company Kumul to acquire a 5% stake in PNG.
Reuters. But the deal will only go through if the project’s
Marape met with his Japanese counterpart other investors waive their pre-emptive rights
Fumio Kishida last week ahead of the funeral to the stake. They could only acquire it if they
of former Japanese leader Shinzo Abe. Accord- match Kumul’s offer.
ing to Marape, Kishida stressed Japan’s need for Japan is scrambling to shore up its energy
increased security and was eager to expand trade security amid the soaring global cost of LNG,
between the two countries. which Tokyo expanded the use of in the wake
“I assured Prime Minister Kishida that PNG of the 2011 Fukushima nuclear disaster, and its
can help Japan’s energy security needs with a subsequent decision to close down many of its
continuous supply of LNG,” Marape said in nuclear reactors.
comments posted by his office on social media. The country is also a major buyer of Rus-
“I assured him that if there are any additional sian LNG from the Sakhalin LNG plant, adding
gas fields to be developed, Japan would be given additional risk given Moscow’s use of oil and
priority in developing them, which I discussed gas supplies as a weapon against those countries
later with Sojitz, JX Nippon Oil & Gas Explora- that supported international sanctions against
tion Corp. and LNG Japan Corp.” Russia.™
Japan is already a key investor in PNG’s gas

P8 www. NEWSBASE .com Week 40 05•October•2022