Mitsubishi Corporation (“Mitsubishi”, Head Office: Tokyo; President and CEO: Ken Kobayashi) and Mitsui & Co., Ltd. (“Mitsui”, Head Office: Tokyo; President and CEO: Tatsuo Yasunaga) are pleased to announce that the North West Shelf Project (NWS Project), in which Japan Australia LNG (MIMI) Pty. Ltd. (“MIMI”, a Mitsubishi and Mitsui fifty-fifty joint venture) has a capital participation, has made a final investment decision on the Greater Western Flank Phase 2 (GWF-2) gas fields development project off the north-west coast of Australia.

 

The GWF-2 Project will involve the drilling of eight natural gas production wells in the six gas fields within the development area. The plan calls for connecting these wells to the existing Goodwyn A platform via a 35-kilometer subsea pipeline. The natural gas produced by the project will be transported to the Karratha Gas Plant, where it will be converted into liquefied natural gas (LNG) for shipment and sale to customers or will be provided as domestic gas.

 

Total investment for the project is expected to be approximately US$2.0 billion (Operator’s estimate; 100% cost), with MIMI’s equity share amounting to approximately US$330 million. Recoverable reserves are estimated at 1.6 trillion cubic feet (Tcf) of natural gas and 43 million barrels of condensate. Production is scheduled to begin in the second half of 2019.

 

Over 25 years have passed since the NWS Project began to produce LNG in 1989. The development of previously discovered but undeveloped gas fields, such as the GWF-2 Project, will make a major contribution to enhancing the value of the NWS Project.

 

Mitsubishi and Mitsui will continue to work through MIMI to ensure the safe and reliable operation of the NWS Project, while also contributing to the stable supply of energy through the diversification of energy supply sources and the reinforcement of both companies’ LNG marketing capabilities.

 

<NWS JV Shareholdings>

MIMI	16.67%
BHP Billiton Petroleum (North West Shelf) Pty. Ltd.	16.67%
BP Developments Australia Pty. Ltd.	16.67%
Chevron Australia Pty. Ltd.	16.67%
Shell Australia Pty. Ltd.	16.67%
Woodside Energy Ltd. (Operator)	16.67%

  

 

<Profile of MIMI>

Name	Japan Australia LNG (MIMI) Pty., Ltd
Founded	1985
Capital structure	Mitsui : 50% Mitsubishi : 50%
Business outline	Gas and oil exploration, development and production, and the liquefaction, transportation and marketing of natural gas
Head office	Perth, Western Australia
Directors	President Motohiro Desaki (seconded from Mitsui ), Vice President Gen Kunihiro (seconded from Mitsubishi) Eight directors (four each from Mitsui and Mitsubishi)
Employees	Approx. 50