LNG Japan Corporation is an energy trading house involved in the LNG industry and was established by Sumitomo and Sojitz in 2001. Since the 1970s LNG Japan Corporation has been importing LNG from Indonesia since the 1970s as part of a twenty year supply agreement with Pertamina for 7.47 million tons of LNG. The LNG is then sold to nine buyers which are either a electric power company, a city gas company or a steel company in Japan.
In total the company accounts for around 20% of LNG imports into Japan and over 90% of exports from Indonesia. In November 2009 Japan Petroleum Exploration, Osaka Gas, Japan Energy Development and LNG Japan Corporation, along with consortium partners today signed the GMB Sanga-Sanga Production Sharing Contract (Sanga-Sanga CBM PS) with the Government of Indonesia for coal bed methane production within Indonesia. A special purchase company, Japan CBM Limited (JCBM), was set up for this project, which has a 4.375% stake in the project.
In Indonesia the LNG Japan Corporation has a stake in the Tangguh LNG Project located in the Muturi, the Berau and the Wiriagar blocks in the province of West Irian Jaya. Its first acquisition was in1999 when LNG Japan acquired a 5% share in the Muturi block from BG International Ltd. and Cairns Limited. The, LNG Japan increased its share in the block to 34.23% in 2004 by the acquisition of an additional 29.24% stake from BG International. Long-term sales and purchase agreements for LNG produced from the projects has been signed for delivery of LNG to Fujian (China), Korea and the US West Coast.
Also in Indonesia LNG Japan has acquired a 4.375% stake in the Sanga Sanga oil and gas block and the CBM (Coal Bed Methane) block in Eastern Kalimantan along with Osaka Gas and Japan Petroleum Exploration. Natural gas produced from the field is delivered to Japan, Korean, and Taiwan through the Badak liquefaction plant. CBM to be produced in the future is also planned to be sold as LNG to the Asian and other markets.
