Search

 

Cablegate: Jbic Inks Loan for Sakhalin 2

VZCZCXRO2018
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.

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

© Scoop Media

 
 
 
 
 
World Headlines

 

Werewolf: Gordon Campbell On North Korea, Neo-Nazism, And Milo

With a bit of luck the planet won’t be devastated by nuclear war in the next few days. US President Donald Trump will have begun to fixate on some other way to gratify his self-esteem – maybe by invading Venezuela or starting a war with Iran. More>>

Victory Declared: New Stabilisation Funding From NZ As Mosul Is Retaken

New Zealand has congratulated the Iraqi government on the successful liberation of Mosul from ISIS after a long and hard-fought campaign. More>>

Gordon Campbell: On The Current US Moves Against North Korea

If Martians visited early last week, they’d probably be scratching their heads as to why North Korea was being treated as a potential trigger for global conflict... More>>

ALSO:

Gordon Campbell: On The Lessons From Corbyn’s Campaign

Leaving partisan politics aside – and ignoring Jeremy Corbyn’s sensational election campaign for a moment – it has to be said that Britain is now really up shit creek... More>>

ALSO:

Another US Court: Fourth Circuit Rules Muslim Ban Discriminatory

ACLU: Step by step, point by point, the court laid out what has been clear from the start: The president promised to ban Muslims from the United States, and his executive orders are an attempt to do just that. More>>

ALSO:

 
 
 
 
 
 
  • Pacific.Scoop
  • Cafe Pacific
  • PMC