Identifier
Created
Classification
Origin
08TOKYO1674
2008-06-18 08:16:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Tokyo
Cable title:
JBIC INKS LOAN FOR SAKHALIN 2
how-toVZCZCXRO2018 PP RUEHFK RUEHKSO RUEHNAG RUEHNH DE RUEHKO #1674 1700816 ZNR UUUUU ZZH P 180816Z JUN 08 FM AMEMBASSY TOKYO TO RUEHC/SECSTATE WASHDC PRIORITY 5193 INFO RUEHBJ/AMEMBASSY BEIJING PRIORITY 3974 RUEHMO/AMEMBASSY MOSCOW PRIORITY 2375 RUEHFR/AMEMBASSY PARIS PRIORITY 6160 RUEHUL/AMEMBASSY SEOUL PRIORITY 9969 RUEHFK/AMCONSUL FUKUOKA PRIORITY 8439 RUEHNAG/AMCONSUL NAGOYA PRIORITY 6707 RUEHNH/AMCONSUL NAHA PRIORITY 0814 RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 2162 RUEHKSO/AMCONSUL SAPPORO PRIORITY 9024 RHHJJPI/PACOM IDHS HONOLULU HI PRIORITY RHMCSUU/DEPT OF ENERGY WASHINGTON DC PRIORITY RUCNDT/USMISSION USUN NEW YORK PRIORITY 0387 RUEHBS/USEU BRUSSELS PRIORITY RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
UNCLAS TOKYO 001674
SENSITIVE
SIPDIS
USTR FOR CUTLER/BEEMAN
FOR EAP/J AND EEB/IEC
DOE/PI FOR DPUMPHREY, JNAKANA
PACOM FOR D. VAUGN
E.O. 12958: N/A
TAGS: ENRG EPET PREL EFIN RS JA
SUBJECT: JBIC INKS LOAN FOR SAKHALIN 2
REF: TOKYO 1552
Sensitive but unclassified - not for internet distribution.
UNCLAS TOKYO 001674
SENSITIVE
SIPDIS
USTR FOR CUTLER/BEEMAN
FOR EAP/J AND EEB/IEC
DOE/PI FOR DPUMPHREY, JNAKANA
PACOM FOR D. VAUGN
E.O. 12958: N/A
TAGS: ENRG EPET PREL EFIN RS JA
SUBJECT: JBIC INKS LOAN FOR SAKHALIN 2
REF: TOKYO 1552
Sensitive but unclassified - not for internet distribution.
1. (U) The Japan Bank for International Cooperation (JBIC)
signed a loan agreement June 16 with the Sakhalin Energy
Investment Company Ltd. to provide up to $3.7 billion in
financing for the second phase of the Sakhalin 2 natural gas
project according to a JBIC press release. A syndicate of
private sources will provide an additional $1.6 billion,
bringing total financing for the project to $5.3 billion.
2. (U) Sakhalin 2, in which Mitsui & Company Ltd, Mitsubishi
Corporation, Shell Oil and Russia's state-owned Gazprom have
equity shares, is expected to yield 9.6 million tons of
liquid natural gas (LNG) annually. More than 50% of this
amount will be delivered to Japan, accounting for 8% of the
country's total LNG imports. In addition, according to the
press release, Japan will receive a "substantial percentage"
of the 150,000 barrels of crude oil per day pumped from the
project. The loan will be used to construct a marine
platform, oil and gas pipelines and an LNG plant.
3. (SBU) Comment. Japan imports nearly 80% of its energy
needs and energy security is a long-standing and high-profile
issue. The JBIC financing of Sakhalin 2 is part of the
long-term energy strategy the GOJ announced in 2006 to reduce
Japan's overwhelming exposure to global energy markets by
pursuing ownership of overseas projects. Despite numerous
delays, cost overruns and environmental challenges, Sakhalin
2 will help Japan lock-in a steady supply of LNG and, to a
lesser extent, crude oil.
SCHIEFFER
SENSITIVE
SIPDIS
USTR FOR CUTLER/BEEMAN
FOR EAP/J AND EEB/IEC
DOE/PI FOR DPUMPHREY, JNAKANA
PACOM FOR D. VAUGN
E.O. 12958: N/A
TAGS: ENRG EPET PREL EFIN RS JA
SUBJECT: JBIC INKS LOAN FOR SAKHALIN 2
REF: TOKYO 1552
Sensitive but unclassified - not for internet distribution.
1. (U) The Japan Bank for International Cooperation (JBIC)
signed a loan agreement June 16 with the Sakhalin Energy
Investment Company Ltd. to provide up to $3.7 billion in
financing for the second phase of the Sakhalin 2 natural gas
project according to a JBIC press release. A syndicate of
private sources will provide an additional $1.6 billion,
bringing total financing for the project to $5.3 billion.
2. (U) Sakhalin 2, in which Mitsui & Company Ltd, Mitsubishi
Corporation, Shell Oil and Russia's state-owned Gazprom have
equity shares, is expected to yield 9.6 million tons of
liquid natural gas (LNG) annually. More than 50% of this
amount will be delivered to Japan, accounting for 8% of the
country's total LNG imports. In addition, according to the
press release, Japan will receive a "substantial percentage"
of the 150,000 barrels of crude oil per day pumped from the
project. The loan will be used to construct a marine
platform, oil and gas pipelines and an LNG plant.
3. (SBU) Comment. Japan imports nearly 80% of its energy
needs and energy security is a long-standing and high-profile
issue. The JBIC financing of Sakhalin 2 is part of the
long-term energy strategy the GOJ announced in 2006 to reduce
Japan's overwhelming exposure to global energy markets by
pursuing ownership of overseas projects. Despite numerous
delays, cost overruns and environmental challenges, Sakhalin
2 will help Japan lock-in a steady supply of LNG and, to a
lesser extent, crude oil.
SCHIEFFER