Corporate Information

Press Release (Dec 07,2009)
Conclusion of a Sale and Purchase Agreement regarding the PNG LNG Project
The Tokyo Electric Power Company, Incorporated ("TEPCO") has today executed an LNG 
sale and purchase agreement with Papua New Guinea Liquefied Natural Gas Global 
Company LDC, Seller of LNG from the Papua New Guinea LNG Project ("PNG LNG Project"). 
The agreement will take effect upon satisfaction of conditions, including Government 
approvals and financing arrangements for the Project. 

Under the agreement, TEPCO will purchase approximately 1.8 million tons of LNG per 
year for 20 years starting from late 2013/2014. The PNG LNG Project will have an 
annual supply capacity of approximately 6.6 million tons of LNG. 

TEPCO considers that the PNG LNG Project is one of the most promising projects 
expected to start-up by the mid-2010s, and that the overall terms and conditions of 
the agreement are attractive for both parties.

The PNG LNG Project is an integrated development which includes gas production and 
processing facilities, onshore and offshore pipelines and liquefaction facilities. 
Participating interests are ExxonMobil (through various affiliates, including Esso 
Highland Limited as Operator) 41.5%, Oil Search 34.0%, Santos 17.7%, Nippon Oil 5.4%, 
Mineral Resources Development Company 1.2%, and Petromin PNG Holdings Limited 0.2%. 
(Participation will change when the PNG state nominees join as equity participants 
at a later date). 

The PNG LNG Project will be the 11th LNG project from which TEPCO has procured LNG 
under long-term contracts, and will contribute to the diversification of TEPCO's LNG 
supply sources.

Outline of the agreement:
1. Seller: Papua New Guinea Liquefied Natural Gas Global Company LDC
2. Buyer: TEPCO
3. First Cargo: late 2013 to 2014
4. Contract Period: 20 years
5. Annual Contract Quantity: approximately 1.8 million tons in normal years

Appendix (PDF 20.4KB)

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