Mitsubishi Corp., the major Japanese trading entity, was among the 4 companies who were granted approval by the Canadian government last month to export shale gas from western Canada, sources revealed on Monday. The approval was to export shale gas in the form of 24 million tons of liquified natural gas (LNG) annually over 25 years.
The three other companies who have obtained approval were Royal Dutch Shell PLC, Korea Gas Corp. and China National Petroleum Corporation. Together, the four firms are expected to begin an output of 12 million tons of LNG per year starting around 2020. Royal Dutch Shell has 40 percent concession share, while the three others have 20 percent each. An export facility near the port of Kitimat, British Columbia is planned to be built to service the production over the years.
Meanwhile, Japan Petroleum Exploration Co. (JAPEX) said on Monday that it will be taking part in a Petronas shale gas development and production project in Western Canada. JAPEX acquired a 10 percent stake in the project, seen to produce 12 million tons of LNG annually from late 2018, of which JAPEX will export 1.2 million tons to Japan. The demand for traditional sources of energy like LNG has surged in Japan due to the idling of nuclear power plants because of the March 2011 Fukushima atomic disaster.
[ via The Globe and Mail ]
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