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- Toyota Tsusho signed a Coal Bed Methane(CBM) Sales Agreement with the Queensland Curtis LNG project in Australia and decided on the CBM Development Program
Press Room
Toyota Tsusho signed a Coal Bed Methane(CBM) Sales Agreement with the Queensland Curtis LNG project in Australia and decided on the CBM Development Program
2011-12-13
Toyota Tsusho Corporation (hereinafter "TTC"; head office: Nagoya, Japan; president: Jun Karube), signed the CBM(*1) Sales Agreement with Walloons Coal Seam Gas Company Pty Ltd, a subsidiary of BG Group plc. (hereinafter "BG Group"; head office: United Kingdom), the ultimate owner of the Queensland Curtis LNG Project (hereinafter "QC LNG"). TTC will supply CBM over 20 years from ATP651P block (*2) (TTC has 15% equity), which can serve as feed gas for QC LNG.
QC LNG is the world’s first CBM based LNG Project and this is the first CBM long term sales agreement for a Japanese company.
TTC also made the decision to engage in this CBM development program at ATP651P with about AU$ 300 Mil investment including the acquisition price.
QC LNG is expected to begin LNG production in 2014 and had signed LNG long term sales agreements with a Japanese power company and a gas company. TTC believes, by developing ATP651P, this CBM Sales Agreement could contribute to the procurement of a stable and flexible LNG supply for Japan.
TTC considers Australia to be one of the most important countries for upstream investments in the gas value chain and has been acquiring conventional and unconventional gas exploration, development, and production rights. TTC’s strategy calls for proactive investments in the building of the LNG value chain, and also further investments towards gas related projects for the Australian domestic market, where steady growth in gas demand is expected in the future. This agreement and the decision to engage in the development program are consistent with this strategy.
(*1) Coal Bed Methane (CBM)
Coal bed methane (CBM) is a gas formed as a by-product of the coal-formation process, and is categorized as an unconventional natural gas. The applications of CBM are largely the same as for conventional natural gases, and commercial production has been underway in the United States and Australia for many years. CBM reserves are abundant in Australia, with estimates of up to 350 tcf. There are 2 more CBM based LNG Projects in Australia whose LNG Plants are both under construction. CBM based LNG Projects in Australia are expected to expand.
(*2) ATP651P block
This CBM block is situated in Queensland’s Surat Basin and operated by QGC Pty Ltd (head office: Brisbane), which is wholly owned by BG Group. This block is potentially a key supply source and could supply over 10% of feed gas at the start of the Queensland Curtis LNG project. In March 2010, TTC acquired 15% equity in this block for AU$ 98.5 Mil through its wholly owned subsidiary, Toyota Tsusho CBM Queensland Pty Ltd.
[Toyota Tsusho CBM Queensland Pty Ltd Company Profile]
| Company Name |
Toyota Tsusho CBM Queensland Pty Ltd |
|---|---|
| Head Office |
Brisbane, Australia |
| Establishment |
2009 |
| Representative |
Hideyuki Inazumi |
| Activities |
CBM exploration, development, production, and sales |
[Queensland Curtis LNG Project]
This liquefied natural gas (LNG) project is operated by BG Group’s subsidiary QGC Pty Ltd. Located near Gladstone, the liquefaction plant will be supplied with coal bed methane (CBM) via a pipeline from the Queensland CBM fields. In October 2010, The BG Group has reported the Final Investment Decision (FID) for this project, and in November 2010, the construction of the LNG plant for the first two processing trains commenced. Markets for LNG production have already been identified covering the long-term supply of 8.5 million tons annually from the first two processing trains.
[Scheme]
[Location of the Block]
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