Japanese Inpex to Reorganise Domestic Gas Business
As a response to the changing natural gas business in Japan triggered by the full liberalisation of the gas retail market, Inpex will alter its natural gas business operations by establishing a single domestic energy supply and marketing division through the reorganisation of its existing oil and gas business division 2 and gas supply and infrastructure division. The new division will come into existence effective April 1, 2017.
The new liberalised natural gas market will come into effect April 1, 2017. Under the new regime, all Japanese electricity consumers, including households and small businesses, can freely select and subscribe to service plans offered by any registered electric power company.
Naoetsu LNG terminal (Credit: Inpex)
“The reorganisation is designed to allow Inpex to respond more flexibly and productively to this changing environment and strengthen its natural gas business operations in Japan,” the company said March 27 in statement.
It aims to achieve a domestic gas supply volume of 2.5bn m³/yr in the early 2020s, and 3bn m³/yr in the longer-term.
Exits Indonesia block
Inpex will sell its stake in subsidiary Inpex Natuna that holds a 35% participating interest in South Natuna Sea Block B to Indonesia Medco Daya Sentosa, a subsidiary of Medco Energi Internasional as part of its portfolio optimisation process. Inpex has been producing oil and gas from the multiple fields in the block.
“After almost 40 years since the start of oil production, the contribution of Inpex Natuna, Ltd. in terms of income and cash flow is expected to become relatively limited. Hence with a view to optimise the Group’s global asset portfolio, Inpex has decided to sell all its shares,” Inpex said in a separate statement March 27.
Inpex began producing oil in 1977 and natural gas in 2001. Thereafter, crude oil, natural gas and liquid petroleum gas development and production activities took place at multiple oil and gas fields in the block, the company informed.
South Natuna Sea Block B is 1,200 km north of Jakarta in the Natuna Sea.
Shardul Sharma