Feb 15 The Japanese government will give
guarantees for up to 1 trillion yen ($10.75 billion) in loans
for projects that generate shale gas and other lower-cost energy
supplies, the Nikkei said.
The new loan program, which will be presented on Monday by
Economy and Industry Minister Toshimitsu Motegi, will give
preferential treatment to U.S. shale gas projects, the paper
The first to benefit from the program will likely be U.S.
shale gas projects planned by three groups -- an alliance of
Osaka Gas Co and Chubu Electric Power Co, a
partnership between Mitsui & Co Ltd and Mitsubishi Corp
, and a coalition consisting of Sumitomo Corp
and Tokyo Gas Co, the Nikkei reported.
Under the plan, state-run Japan Oil, Gas and Metals National
Corp (JOGMEC) will expand its loan guarantee program for energy
businesses. JOGMEC'S guarantee cap will increase to 75 percent
from 50 percent, the business daily said.
The paper also said the guarantee fee will go down by a 0.1
percentage point from the current rate of 0.8 percent.
Besides U.S. shale gas projects, the loan program will also
accommodate gas projects in Russia, Australia, Africa, the daily