Kanematsu to sell gas stake

Kanematsu to sell gas stake

TOKYO (Nikkei): Kanematsu Corp. will sell a stake in its
natural gas concession in the Indonesian part of New Guinea to
raise funds to cover extensive extraordinary losses, The Nihon
Keizai Shimbun Saturday morning edition reported, citing company
officials.

The Tangguh project is expected to be a long-term source of
stable revenue for the company. However, the struggling trading
firm desperately needs to offset 200 billion yen in extraordinary
loss on liquidation of affiliates over three years.

The gas fields in the western part of New Guinea are estimated
to contain 18 trillion cubic feet of natural gas, making them one
of the 10 largest deposits in the world. The fields are expected
to yield more than 6 million tons of liquefied natural gas a
year.