Gambling on Gas technical notes
These notes supplement Global Energy Monitor’s July 2020 report ‘Gambling on Gas: Risks Grow for Japan’s $20 Billion LNG Financing Spree’.
Listed below are the LNG terminals, LNG-associated pipelines and LNG tankers which have been financed by Japanese financial institutions and investors since January 2017, most often alongside policy and commercial banks from other countries. The overall financing by Japanese institutions for LNG infrastructure in the period which has been detected by Global Energy Monitor’s research is US$23.4 billion. The lack of full public accounting suggests that the actual total, particularly for projects supported by the private sector, is higher.
The public sector Japanese institutions involved in this financing are: Development Bank of Japan, Japan Bank for International Cooperation (JBIC), Japan International Cooperation Agency (JICA), and Japan Oil, Gas and Metals National Corp. (JOGMEC).
The private sector Japanese institutions involved in this financing are: Mitsubishi UFJ Financial Group (MUFG), Mitsui & Co, Mizuho, Nomura, Norinchukin Bank, and Sumitomo Mitsui Banking Corporation (SMBC).
LNG Terminals
| Projects | Financing |
| Acu FSRU, Brazil | US$46.4 million in 2019 from SMBC |
| Arctic LNG 2 Terminal, Russia | US$130 million in 2019 from JBIC |
| Australia Pacific LNG Terminal | US$449.5 million in 2019 from MUFG, Mizuho, Norinchukin Bank and SMBC |
| Calcasieu Pass LNG Terminal, U.S.A | US$1.335 billion in 2019 from Mizuho, Nomura and SMBC |
| Cameron LNG Export Terminal, U.S.A. | US$1.988 billion in 2019 from Mizuho and SMBC |
| Coral South FLNG Terminal, Mozambique | US$279 million in 2017 from SMBC |
| Corpus Christi LNG Terminal, U.S.A. | US$1.930 billion in 2017–2019 from MUFG, Mizuho and SMBC |
| Cove Point LNG Terminal, U.S.A. | US$4.013 billion in 2018–2019 from MUFG, Mizuho and SMBC |
| Dunkirk LNG Terminal, France | US$118 million in 2018 from SMBC |
| Elba Island LNG Terminal, U.S.A. | US$122 million in 2017–2019 from Mizuho and SMBC |
| Freeport LNG Terminal, U.S.A. | US$1.179 billion in 2018–2019 from MUFG, Mizuho and SMBC |
| Greater Tortue Ahmeyim FLNG, Senegal | US$58.3 million in 2019 from Development Bank of Japan |
| Ichthys LNG Terminal, Australia | US$285 million in 2017 from Mizuho and SMBC |
| Jawa-1 FSRU, Indonesia | US$765.2 million in 2018 from JBIC, MUFG and SMBC |
| Moheshkhali FLNG Terminal, Bangladesh | US$23.22 million in 2017 from JICA |
| Mozambique LNG Terminal | US$6.5 billion in 2018–2019 from JBIC, JOGMEC and Mitsui & Co. |
| Sabine Pass LNG Terminal, U.S.A. | US$1.718 billion in 2017–2020 from MUFG, Mizuho and SMBC |
| Summit FSRU, Bangladesh | US$97 million in 2019 from SMBC |
| Telfers FSRU, Panama | US$350 million in 2019 from SMBC |
| Total | US$21.386 billion |
The financing detailed below covers contributions from MUFG, Mizuho and SMBC for three U.S. gas pipeline projects. Dominion Energy and Duke Energy’s Atlantic Coast Gas Pipeline may be connected to the Elba Island LNG Terminal in Georgia or will be hooked up into the existing pipeline system connected to LNG export terminals on the U.S. east coast. TC Energy’s Coastal GasLink Pipeline in Canada is intended to supply Shell’s proposed LNG Canada Terminal. Kinder Morgan’s Permian Highway Pipeline is intended to serve the Aqua Dulce hub in the Gulf of Mexico.
| Projects | Financing |
| Atlantic Coast Gas Pipeline, U.S.A. | US$610 million in 2017 from MUFG, Mizuho and SMBC |
| Coastal GasLink Pipeline, U.S.A. | US$756 million in 2020 from MUFG, Mizuho and SMBC |
| Permian Highway Pipeline, U.S.A. | US$162.4 million in 2019 from MUFG, Mizuho and SMBC |
| Total | US$1.528 billion |
LNG Tankers
| Projects | Financing |
| Areej LNG Carrier Refinancing | US$17 million in 2018 from SMBC |
| Ibri LNG Vessel Refinancing | US$30 million in 2018 from Mizuho |
| Navigare LNG carrier Loan Financing | US$28.05 million in 2019 from SMBC |
| Three Seri-C LNG vessels | US$114 million in 2018 from Mizuho |
| Snohvit LNG Vessel I Refinancing | US$336.2 million in 2018 from JBIC, MUFG, Mizuho and SMBC |
| Total | US$525.370 million |
Methodology
The finance data provided above covering the period January 2017 to June 2020 is derived from Global Energy Monitor’s research of the institutions’ websites, research reports, IJGlobal’s subscription-based financial database, and media reports.
