Mitsubishi Corporation Participation of Korea Gas Corporation in Canada's Shale Gas Development Project

abarrelfullabarrelfull wrote on 01 Jul 2011 15:02
Tags: canada gas kogas mitsubishi shale

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Mitsubishi Corporation (MC) has today announced that it has agreed to collaborate with Korea Gas Corporation (KOGAS, headquartered in Seongnam City, South Korea) in developing a natural gas project centered on shale gas in the Cordova Embayment of northeastern British Columbia, Canada, into which MC has been promoting from last September together with Penn West Exploration (PWE, headquartered in Calgary), a senior independent Canadian oil and natural gas producer.

MC will transfer 10.0% of MC's shares in Calgary-based subsidiary Cordova Gas Resources Ltd. (CGR), fifty-fifty joint venture partner with PWE. Earlier, in this May, 22.5% of MC's shares in CGR have been also transferred to Chubu Electric, Tokyo Gas and Osaka Gas, each partner receiving an equal 7.5%. Japan Oil, Gas and Metals National Corporation (JOGMEC) has also gained a 7.5% share in CGR through its investment in Shale Gas Investment B.V., a holding company of CGR established by MC in Amsterdam. A series of these transactions will bring about changes in ownership, making this the joint project between Canada, Korea and Japan (PWE:50%, MC:30%, KOGAS:5%, JOGMEC/Chubu Electric/Tokyo Gas/Osaka Gas:3.75% each).

Large-volume production of shale gas is now cost feasible due to recent advances in drilling and completion technology. As a result of these advances, large reserves have been brought to international attention. In particular, western Canada has abundant reserves of shale gas, which is garnering attention worldwide as a viable source of energy.

MC plans to discuss studying the possibility of exporting the shale gas to Japan as LNG among Japanese partners. The participation of KOGAS, the world's biggest LNG importer, will accelerate the discussion by leveraging each nation's strength so that energy resources can be stably secured within eastern Asia.

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