Japan Petroleum Exploration Co., Ltd. (JAPEX) will participate in the project to construct a liquefied natural gas (LNG) terminal in the northern part of the Socialist Republic of Vietnam (hereinafter "the project"). On December 28, 2021, JAPEX signed a share purchase agreement with ITECO JOINT STOCK COMPANY (hereinafter "ITECO JSC," Head Office: Ho Chi Minh City, Vietnam), a company to promote the project, and will further proceed with the share acquisition procedures.

The project involves the construction of an LNG Terminal in the Nam Dinh Vu Industrial Park in Hai Phong City, Vietnam, and procurement, storage, and supply of LNG. This project, including the Northern Vietnam LNG Terminal, was approved by the government to be added to the Gas Industry Development Master Plan on February 11, 2020.

As the initial development, the construction of a 50,000 m3 LNG storage tank and associated jetty facilities capable of handling a throughput volume of up to 650,000 metric tons of LNG annually is planned, and we are currently working to make a final investment decision (FID) expected in the second half of this year. Besides, an additional LNG storage tank of 30,000 m3 is planned for the latter half of the 2020s as the expansion development.

The facilities to be constructed in the project are planned to commence commercial operation in 2025. In alignment with the project, ITECO JSC is currently moving forward with discussions about LNG procurement as well as its offtake and distribution.

JAPEX will respond to the demand for natural gas and LNG as a lower environmental impact energy source in Japan and abroad, utilizing our capabilities in domestic natural gas supply, such as LNG terminal operations and gas supply chain establishment.

About Japex

JAPEX is engaged in projects in Japan and overseas that span the E&P value chain, from exploration, development, production and transportation to supply for long-term stable supply of energy.

Recently JAPEX has been focusing on three main business areas; E&P Business as our core business, Domestic Natural Gas Supply Business as stable supply and growth its volume of natural gas for clients, and Environment and Innovative Technology Business as new energy development utilizing our accumulative technologies and insights through E&P business.

Furthermore, JAPEX is aiming to “Transform to an Integrated Energy Company with a Focus on E&P” to expand our business area wider related to oil and gas E&P.