Japanese trading company Toyota Tsusho Corporation has signed an agreement with a subsidiary of oil and gas firm BG Group plc. for the supply of gas from a coal bed methane block in Australia.
BG’s Queensland Curtis LNG project will extract methane and convert it into liquefied natural gas. The Queensland area has emerged as an abundant region for coal seam gas in the Pacific basin, with the project estimating its reserves at more than 21 trillion cubic feet.
According to a statement, TTC have invested A$300 million (£195m) in the coal bed methane development program, which includes the acquisition price.
Since the disaster at Fukushima in March of this year, Japan dropped its nuclear programme and began to rely heavily on LNG imports to make up its energy requirements. This latest development could offer a stable supply of LNG for Japan, according to TTC.