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Document Number

Please Return To DOCUMENT CONTROL

LNG MARKETING IN JAPAN

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f'!, <""'~~

c.

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,;

FEB, 1985

ITOH & CO., LTD.

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f, .·

1. LNG PROJECTS IN JAPAN

'.! i

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l~ .

11 •

L

:::~~

~ ·::

\·

~l!lr

I

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1 ) OPF:Rl\'l'I NG - A -

----PROJEC'r .. ~··~·--· I~ -~I

ALAC:I<'I\ DRUNEI --~~-~--~--~---------! --~::..._..:_:::.:...:..__ ___ , ___ _ ADU DHABI INDONESIA

GAS SOURCE

POR'I'S OF ~; ll I 1' t>11·;N'l'

P£lODlJC'l'ION

COMPANY

'l'ERt-1

North Cook inlet gas field

Port Nikiski

Phillips Petroleum

70 %

Harathon Oil

30 %

1969/11 - 1989

S. H. J\mpil Zakum, Umm Shalf

1972/12 - 1992 1977/4 - 1997

Dadak(East-Kalimantan) A run (North-Sumatra)

Bon tang I:,.hoseumuwe

P-T-Badak Natural Gas Liquefaction Co.

Pertamina !55 %

IIUFFCO 30 %

JILCO 15 %

P-T-Arun Natural Gas Liquefaction Co.

Pertamina 55 %

Mobil 30 %

JILCO 15 %

Badak 1977/8 - ~QO~

l\run . I I 1 f ~--I 1 9 7 8 I 1 o - 1 9 9 9

VOLUME

(1,000tonjyear) 9GO 5114 0 LNG

LPG

2;060

800

Dadak

A run

3,000

4,500

'

I I I - - I I

IMPOH'r

COMPANY

(1,000tonjyear)

Tokyo Electric Power Co., Inc

720

Tokyo Gas co.,LLd.

240

C'J\HIUEllS I 71,500 mJ x 2

'I'ok yo f-:lec l:r iG Power Co. , Inc.

'l'okyo Gus co., Ltd.

Osaka Gas Co.rLtd.

3,450

1 1060

&30

'l'OI<YO Electric

Power Co., Inc.

i<ansai Electric Power Co. , Inc.

Chubu II

l<yushu " Osaka Gas Co.

Nippon steel Corp.

.,.

214 00

1, 700

1,500

1 1 )Q{)

600

76,900!1l) X 2 _J 87 1 60011\3 X 1

75,000m3 x 5 125 1 000m3 x 3 I 125,000m3

x 7 --·---· ---·-"'·•·-----~· ·I-----·--·----·· ·----·--·-1• -·-- -----· ----------

Cl!:' PIHCE 1 ()r·,

~.-J.r.·n-.!:!l..r 1\ >V z_'JJ1l.L ---- 4---:. 4.9J 527 59 4-..:..

-.. ........... ~- ............... --· .,,., ~----·-·......_ __________ .. ----···--·--- ·------- ---------.. ~--------

,,.....,.--'-""~'¥-___,_........ ~, -, ... -...~-- -··

c. i)

"

l

.?-:.

. ~~

-----------· --~·i-

I . ....

(I

-

' } '- t

':~

-

~ . ~-(

'

. ' \. ~ .. . ·•· .. . ' .. ·---- ·-..-.~ . ~ . . . ,. .. . . . ~ ... - ' . . - '

~ "

""' ~

GAS SOURCE

POR'rS OF

Sll I PMEN'l'

PRODUCTION

COMPANY

TERM

INDONESIA

(Badak Exp,nsion)

Badak

Bon tang

OPJ~Hl\'l'ING - 13 -

r r--- -~ ----~

I INDONESIA I INDONESIA

(1\run Expansion) I (Expansion)

I\ run

Lhoseuma\oJe

Badak

Arun

Bon tang

Lhoseumawe

P.T. Dadak Natural I P,T. 1\run Natural

Gas Liquefaction Gas Liquefaction

P.T. Badak

P.T. Arun

co. Co.

1983 - 2003 1983- 2003 1983 - 1998

MJ\L.Z'.~\ SIA

{Sara~tJak)

Bintulu

Bintulu

l1alaysia LNG

1983 - 2003

~------------1 I I

VOLUME

(1,000t:on;yeclr)

IMPOH'l'

COf.lPJ\NY

(1,000ton;year).

3,200

Chubu Electri~ Power Co.

1 t 500

J\ansai II

800

Osaka Gas Co.

500

'l'u ho II

•1 00

3,300

Tokyo Electric Power Co.

400

'l'ohoku Electric Power Co.

2,900

680

Kansai Electric · • Power Co.

170

Chubu II

450

Kyushu II

60

6,000

Tokyo Electric Power co.

4,000

'l'okyo Gas co.

2,000

"

-(-:ir-PJUCI~ t·------- 1-- -l·---·-------1----------~ 1) o:, 5()1) 4 74 . ___ _.1 soG { /\:; ill I !t )\I.' !l•l )

--····'"""""• ... ·~ _,......._.. ¥•--v_,.~.,. -'"'~ _.,.,._' -"·•-...,..,.. ~·~·~~-,~ ~ ·-~"~-·--~·---•--·

..

~~ ..

("

',(.t

_..--"~ _.I&> (I" r 6. 0 G ..

_. • I ; W \. ~ Cl.

- -tr"

"?'

.,·t..·~

2) UIIDER co:!STIWCTION /1il!J ;.:·(:UTIA'l'JOIJ

CANADA I AUSTRALIA

GAS SOURCE I Deep Basin I North Rankin etc.

I -- .. -~

I c !

PORTS OP

~.:·I I SIIIPNENT Prince Rupert I Damp ire I ~~~-t: 4.)

.~~ ~ .. ' :

' /

::.,J ~~

'~~f

I 1

I I Dome Petroleum

I BliP/SHELL 1 PRODUCTION

··I CONPANY Nissho-Iwai BP/CALASIATIC .01!

TEHN 1987 - (2007) 1988 - 2007

' i' ,, VOLUHE 2,350 6,000

I '..::C.·.f ( 1, OOOlin/year) ,-

Chubu Electric I Tokyo Electric P0111er Co. Power Co. 900

1,600 HIPOR'l' I Chubu " 900 CONPANY Kyushu . 11 300 I Kansai " 900

(1,000ton/year) Chugoku ,. 300 Chugoku " 900

I I I Kyushu II 900 I r. 0

Toho II 150 I Tokyo Gas Co 580

'l'oho II 180

Osaka " 580

.,., ,, ~~ ... ~-.-~.--~~ ...... ,..,. .. -'-"""-'"' -.._~~·~- ...... ~ ..... -.

·-••o ·-··•,._ r•-·,r-·o~ .... ~">"-·'~·--.-...__.M~-----•• ... '"'-->•<'~---'« ~---.. ~ • .......___~·~-· .~---,_, __ ,.. ____ ..,,~----~. -.·~--._ ~__,........_,_.. -~ ... ~-~ ..... :; ~~~·+~~ ....

"'~ "' ~-:- .::1 . ·~f· .-·

~-:-J-. ... _. . .,~ . ..--. D [\.

I ;, '. ,! ,, (i'l

,, l

, ',,I :~-~(."I) I

'ot- . .'t - .t

~j .::! ~ 1 () f

} ··t

.·!

-, 1

~

, ,, -,

~Project ----GAS SOURCE

PORTS OF

SIII PI1EN'l'

---

VOLUME I

{1,0001:onfyear) -RESERVE (10

12cf)

3) UNDER PLANNING

u.s.s.,R. j_ QATAR

Sakhalin North Field .

Dl~ I< as tori I Umm-Snid

3,000 6,000

~ -- ., i

32 275

--

~-~--"'"'

"

THAILAND ALASKA (North Slope)

. Gulf of Siam

I Prudhoe Bay

B-Structure .... __ ,. __

Not yet decided Kenai

.

3,000 5,000 - 15,000

-·- . ,_

I gl 26

·f)

---~------...--~ -~--~-·-··· --~ -'rfJ\·"""""' >) ,, - - '(~~c· ~h:-t::~·:-."~ifj~j':-

-, P'•": -. !~«---,.,;·~:,_,jq'~4 c. 1-. -,~_ •• _ ..... -.~,~ .. ,_:.;-_]Jr~.J;;-?.a.cl_ •-\...") '"" ()

_, _ _,_.__ ...... _,~.

~

~ - ~ ~ ,..._ . . . - .

'. ,£,.» " ·-"-· _,tlij~

., f,:~

2 .

P R 0 J E C T S

L_ U.S.A. (ALASKA)

BRUNEI

ABU D!IAB I (DAS)

UNUER INDONESIA

OPERATION MALAYSIA (SARAWAK)

INDONRSJA (BADAK)

/1 (ARUN)

II (EXPANSION)

T 0 T A L

CANADA UNDER

NEGOTIATION 1\USll~AL lA

T 0 T A L

G R A H 0 T 0 T A L

' • ._..,.....,.... -·-M·>~"'--~--.- .........-.-..,..•<-~-- -~...-·-~-"""''''*-~"0._...,

,A1117·. ~-::::-,<

LNG IMPORT VOLUME BY PROJECT AND BUYER IN JAPAN

( UNIT : 1,000 tons/year )

CONTRACT ELECTRIC POWER COMPANIES GAS COMPANIES OntERS

Volume Term Tohoku Tokyo Chubu Kansai Chugoku Kyusht~' Tokyo Osaka Toho Electric Electric Elect ric Electric Eledric Electric 'l'Jas Co. Gas Co. Gas r.o. .

960 1969 - 1989 '120 240

5,140 1972 - 1992 3,450 1,060 630

2,060 1977 - 1997 2,060

., ,500 w; t - 1999 1,700 2,400 1,500 1,300 soo

6,000 1983 - 2003 4,000 2,000

3,200 1983 - 2003 1,500 800 400 500

3,300 1983 - 2003 2,900 400 '

680 19il3 - 1998 450 170 so

28,840 2,900 10.630 3,650 3,370 0 1,560 3,300 2,330 500 600

2,350 198'/ - (2007) 1,600 300 300 150

5,840 1900 - 2007 900 900 900 900 900 580 580 180

a .1so 0 900 2,500 900 1,200 1.200 580 500 330 0

37,030 2,900 11,530 6,150 4,270 1,?.00 2,760 3,880 2,910 830 600

~- - L_ --- - - --~-------- -----~--- ------ L ____

I

~----~---.... ...-. .............. -~------~·----·--~· ---.. ~. -----~--..... -"""'""--- .. l""l.i'-~~-----,~~ ...... ... ~~~¢,! __ ,f ~ "94~ .. 1:1· ........

~-. (\~ '·' ·o:· r -~ .. f, . '\\ :, 0

·l......_:_:;_:

\':'

I

"-i, (!

-';

3. LNG PRICE IN JAPAN

(

-- """--.. . --' ~ I' ----It 1,\

1) LNG Import P~ice in Japan (CIF Japan base)

--------------------------···----. ------ ... ····- .

($/MMBTU}

6.00

5.00

4.00 X - Alaska

' ...,_,.. .... -

• - Brunei .. 3.76 ~---

0- Abu Dhabi

.D.- Indonesia

a- Sarawak

3.00 2.99 A

--!~ A

2.64 2.40

2 32 x- 2.38 • -~· 2.34

2.18 ,,L3o~ 2.32 2. 16~ 2. 22

2.00

1979 1980 1981 1982 1983 1984

JAJ.\i NAY SEP JAN M.J:\.Y SEP JAN 1A.AY SEP JAN MAY SEP JAL\i t-lAY SEP J A)l a~Y

(Yen/KWh)

- -· 25

20

15

10

5

0

2) .Electric Generating Costs- ex Po~1er Plant Gate

o - Hydro

• - Fuel

o - Coal

!:::. - LNG

X - Nuclear

------·-- ·-~ .... -. _...__., .... _ -. -· ...... ~- ·---

20.2 19.8

~16 17.~ 18/ 19~ ~17.6 ~·A'D·.5 - ~6

15 • 6 ~ ~ _,...- A ~17 • 6 16 • g

~-· /16.2 --o-8 14.s-------o

) A 13.9 12.~/ X

---r1.'1 ~-4 ~x------;;.4 9 /'X 11.8

9 . 6r===::::::::=9::1. ~ 11 . 1 9 6.i-. ....

9.5 9.7 ,...--s:>< __...-· 8.8

x----------{ 6

~6.4 s. 7 ·-

1976 1977 1978 1979 1980

__ .,

1981 1982 1983

(YEAR)

I ! J

! r 0

j

I I· '

I :i" i ! I

Ye4r

Ile•

Energy Ot:ll<lnd ---"<

Coal lo3 l

{portion of ) 103 t Indigenous Coal

103 l (portion of) Stea• Coal

Huclecu 103 lew

Hcttural Gas 103 kl

(portion of ) 106 • 3

Indigenous Gds

Il1 t (portion of LNG) I llrdro l Ordinary J o3 lev

103 lew Pu.pins.

·"'

Geother.a1 to3 k1

Hew Energy 103 ld

Petroleu• 106 kl

(portion of ) 103 k1 Indigenous Oil

to3 lei (portion of LPG)

Supply Total lo6 kl

-

·~ "'~.-.

4. LONG-TERM ENERGY DEMAND-SUPPLY FORECAST IN JAPAN

1982 (Actual) 1990

Hew Forecast PreYiou:s Forecast

388 X 106 kl 460 X 106 k1 590 X 106 kl

Quantity Share(%) Quanti h Share(%) Quanti lJ Share(%) . 9(.500 18.5 108,000 17.5 153,000 19.5

(IS .300) (18 ,000-20 ,000) (18 ,000-20 ,000)

(28.400) ((3,000) (68,000)

17,3(0 6.9 3(,000 10.8 46,000 11.3

27,000 7.0 56,000 12.1 68,000 11.5

(2.100) (4,300) (7,300)

(17 ,600) (3S,500) (43,000)

{ 19,360 5.4 { .22,000 5.0 { 23,500 5.0

13,950 18,000 22,000

400 0.1 1,500 0.3 8,000 1.0

900 0.2 8,000 1.7 15.000 2.5

2(0 61.9 240 52.5 290 (9 .1

(480) ( 1.500) (1.900)

(15. 700) (19,000) (24.000)

388 100.0 480 100.0 5~!! 100.0

NOTE :

1995

Hew Forecast _,

530 X 106 1d

Hew Forecast 1983.11.16 Pruious Forecast 1982. L21

2000

Hew Foreca:!l

600 X 108 kl

Pre•iou~ Fcr~cast

170 X 108 kl Quanti h Share(%) Quantity Share(%) C!uanli h Share(%)

128,000 18.0 160,000-170,000 20.0 200,000 19.0

(18,000-20,000)

(58,000)

48,000 u.o 62,000 18.0 90,000 18.0

61,000 12.0 64,000-88,000 11.0 82,000 11.0

(5,000)

((0,000)

{ 2(,000 [ 28,500 5.0 . { 30,000 5.0 5.0

' !9,500 22.000 33,000

3,500 1. 0 6,000-7,000 1.0 15,000 2.0

19,000 (.0 35,000-55,000 6-9 85,000 8.0

250 48.0 250-260 42.0 290 38.0

( 1,900)

I (21,000)

1-·

530 100.0 fiOO 100.0 170 100.0

•

~

I

I

·.:..\

0

,,·.

.. . "' .. .

Table 1

Contract: Amount: Year of Duration Project (Unit: Million First of Con- Remarks

Tons) Imoort tract

I 5-year ex-

Alaska 0.96 1969 15 'tension is . finalized • Brunei I 5.14 I 1972 20 I

6./0 Abudabi I 2.06 1977 I 20 'r. It Indonesia I 7.50 I 1977 23 I J.S,66 Indonesia I .

I (Addition: 3.20 1983 20 lf. it Badakl I Indonesia

I (Addition: 3.30 1984 20 22. I b Arun) Malaysia I 6.00 1983 20 I 2cr ~ r b (Sarawak) Canada 2.90 1986 20 .JL 06 Australia 6.00 1987 19 ;JI').o6

Total 37.06

---":

.~ ... ,~.­.... - - -

,

l 'l '

~-

~

{UNIT: 1,000 T/Y) I

40.000

35-,000

30,000 I I 28~160 I

·---------~ 28 160 I I

25~000

I

r----J25 ,760 I

' ---..1 124,760

20,000

IE,oou

10,001)

5,000

I >

.. . . ' •• !:.!:!§_Supply Contract Status September 6, 1984

( X ) Assumed Max. Demand --------------------------,37,060 MA. (Total of Max. ---------------------- Demand by

37 06

0 --------------------------- 3

6

•

100

Each User) ~-~----;--~

~Demand Max-Corrmi tted

l,;'-"-\Jcanada Dome

----- Receiving Terminal Capacity

(including Uome)

---------------------------------------------------------------------------------------------------'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04

183 '84

105

••

\}

i' :~--

c.-~.

-, ,~-------~---. t~ ~~~,l,i,

---- 0 -::;;

'/