ExxonMobil Announces Opening of Gas Business Development Office in Japan
Completion of Pipeline Feasibility Study positions Sakhalin-1 Project to Supply Natural Gas to Japan
TOKYO, JAPAN, August 26 -- Exxon Neftegas Project Services Inc. (ENPSI), a subsidiary of Exxon Mobil Corporation, has opened a new office in Tokyo to strengthen its commitment to developing gas from the Sakhalin-1 Project.The office is headed by Mr. J. B. (Jack) King, who has been appointed Vice President - Gas Commercial ENPSI and Vice President of Exxon Japan Pipeline Limited (EJPL). In his new positions, Mr. King will be ExxonMobil's senior representative for Sakhalin-1 natural gas business development and pipeline activities in Japan.
Earlier this year, EJPL and a Japanese consortium, Japan Sakhalin Pipeline Co., Ltd., completed a feasibility study for the Japan segment of the proposed pipeline to supply natural gas from Sakhalin Island, offshore Russia, to markets in Japan. Work has now begun on follow-up issues needing clarification and resolution, including the formation of a company to own, build and operate the Japanese segment of the pipeline.
The feasibility study began in April 1999. It addressed issues related to route selection and design standards, as well as environmental and regulatory considerations. The results of the study indicate that a 26 to 28 inch (65 to 70 centimeter) natural gas pipeline, with capacity to deliver about 800 million cubic feet a day (8 billion cubic meters annually), is both technically and commercially feasible.
According to Mr. King, a pipeline from Sakhalin would provide a new and reliable way to competitively deliver clean-burning natural gas to markets in Japan.
"Diversity of supply is an important issue for energy buyers worldwide, and this pipeline would introduce an abundant, reliable and competitive source of energy for Japanese gas buyers.
As operator of the Sakhalin-1 project, this development draws together ExxonMobil's innovative technical skills and global gas marketing expertise. The Sakhalin-1 project, located relatively close to Japan, can be a competitive source of natural gas to an existing market that shows excellent long-term growth potential. Sales discussions with potential buyers along the proposed routes are progressing," he added.
The Japanese segment of the pipeline, which would connect with the Sakhalin-1 gas pipeline, would stretch approximately 900 miles (1,440 kilometers) from offshore Cape Soya, Hokkaido to the suburbs of Tokyo, or about 700 miles (1,120 kilometers) to Niigata on the west coast of Japan.
Engineering, procurement, and construction of the pipeline to deliver gas to Japan are expected to take approximately five years from the time customers commit to purchasing significant gas volumes. Timely regulatory reviews and approvals are also important factors in the project schedule.
Japan Sakhalin Pipeline Co., Ltd. is the operator for the feasibility study. Its shareholders include four Japanese companies: JAPEX (45 percent), Itochu Corporation (23.1 percent), Marubeni-Itochu Steel Inc. (18.7 percent) and Marubeni Corporation (13.2 percent).
The natural gas supply for the proposed pipeline would come from the Sakhalin-1 project, a world-class oil and gas development project. Exxon Neftegas Limited, an ExxonMobil subsidiary, is operator for the Sakhalin-1 consortium with a 30 percent working interest. Other Sakhalin-1 co-venturers are the Japanese company SODECO (30 percent); the Indian company ONGC Videsh Ltd (20 percent); and two Russian companies, SMNG-Shelf (11.5 percent) and RN-Astra (8.5 percent).
INTRODUCING MR. J.B (JACK) KING
J. B. (Jack) King has been appointed Vice President - Gas Commercial, Exxon Neftegas Project Services Inc. and Vice President, Exxon Japan Pipeline Limited. Based in Tokyo, Japan, Mr. King will be ExxonMobil's senior representative for Sakhalin-1 natural gas business development and pipeline activities in Japan.
Mr. King joined Mobil Oil Corporation in 1980 as an engineer and has undertaken a number of key managerial positions associated with gas marketing. He participated in a number of long-term LNG and LPG sales with major Japanese corporations before being appointed Vice President, Gas Products, Mobil Oil Indonesia. In 1995, Mr. King was appointed Vice President, LNG Marketing, Mobil Oil Qatar where he participated in long-term LNG sales with both energy Japanese and Korean buyers. In 1998, Mr. King was appointed President, Mobil Exploration & Producing Peru, Inc. with responsibility for all exploration and producing business development activities in Peru. Following the formation of ExxonMobil Corporation, Mr. King assumed the natural gas business development responsibilities for Latin America.
Mr. King is a graduate of the United States Military Academy (West Point) with a Bachelor of Science Degree in General Engineering and Military Art, and a Masters Degree in Business Administration from Tulane University. Upon graduation from West Point, Mr. King served for ten years as an infantry officer in the United States Army and attained the rank of Major before resigning his commission to join Mobil.
ExxonMobil is the world's largest non-government marketer of equity natural gas, with total equity sales of 10 billion cubic feet per day (bcfd), and total natural gas sales of almost 18 bcfd. The company has access to substantial gas resources in both established gas fields and new gas projects. Net discovered resources total more than 185 trillion cubic feet (tcf), including 56 tcf of proved gas reserves, providing a solid platform for profitable growth.