Marubeni Corporation to Participate in Peru LNG Project
Aug. 29. 2007
Marubeni Corporation (“Marubeni”) today announced that it has signed the Sales and Purchase Agreement with SK Energy for the acquisition of 10% interest in the Peru LNG Project. The international project consortium for the project consists of Hunt Oil Company (50%) of the United States, SK Energy (20%) of Korea, Repsol YPF (20%) of Spain and Marubeni Corporation (10%) of Japan.
This project, located on the west coast of Peru in the South America, has geographical advantage to supply competitive LNG products not only to the Latin America market and U.S. West Coast market but also to Asian Far East market as possible alternative destination. Natural gas feedstock will be supplied from Camisea gas field and processed at LNG Plant located at Pampa Melchorita area, south of Peruvian capital Lima.
The Engineering, Procurement and Construction contract for the project was awarded to the Chicago Bridge & Iron Company and single train LNG plant with production capacity of 4.45 million metric tons per year is currently under construction. The LNG supply will commence in 2010 under the sale and purchase agreement with Repsol YPF. The total project cost is estimated at approximately US$ 3.8 billion. Financing for the project is expected to be provided by a variety of sources, including the Inter-American Development Bank, Export-Import Bank of the United States, Export-Import Bank of Korea, SACE and IFC.
This is the third opportunity for Marubeni to take part in the promising LNG projects further than our current participation into Qatari (7.5%) and Equatoguinean (6.5%) LNG projects and Marubeni is the first Japanese company to participate in the LNG projects in the area of the North, Central and South America. Along with the existing projects participated, Marubeni will proactively pursue the opportunities for a new acquisition of LNG projects in order to further enhance our capability of securing natural energy resources.