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June 22 (Bloomberg) --Tokyo Electric Power Co., Asia’s largest utility, is one of three Asian customers signed byExxon Mobil Corp.to buy liquefied natural gas from its $12.5 billion venture in Papua New Guinea.
Miles Shaw, an Exxon spokesman in Port Moresby, confirmed by e-mail that Tokyo Electric is one of the customers. The company in a statement earlier said it had reached “commercial terms” with three Asian buyers for 4.3 million metric tons of LNG a year.Tokyo ElectricspokesmanMasayuki Kishinoconfirmed the talks when reached by phone in Tokyo, declining to say how much LNG the utility may buy.
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Tokyo Electric imported 20.06 million tons of LNG in the year ended March 2009, with about one quarter coming from the United Arab Emirates, and Brunei and Malaysia each supplying around one fifth, according to the utility.
A contract with Brunei for 4.03 million tons a year is set to expire at the end of March 2013, according to Tokyo Electric’s data.
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The Papua New Guinea venture plans to build a unit near Port Moresby to process gas from the South Pacific nation’s highlands. The project has enough resources to support a third production unit of 3.15 million tons a year that could come on stream by 2017, UBS AG said.
Exxon awarded a contract to a Clough Ltd.-led venture for early project work such as roads, bridges and camps for the project, Clough said on June 4.
LNG is natural gas chilled to liquid form for transportation by ships to destinations not connected by pipeline.
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