October 13, 2014

Toshiyuki Kosugi

Managing Director

Japan Bank for International Cooperation (JBIC)

52nd Australia - Japan Joint Business Conference

JBIC’s Role & Function for Energy security

I. JBIC Profile

II. Energy Circumstances Surrounding Japan

III. JBIC’s support to secure Natural Resources

IV. JBIC Activity in Australia

1. What’s JBIC

1) Promoting overseas development and securement of resources which are important for

Japan

2) Maintaining and improving the international competitiveness of Japanese industries

3) Promoting the overseas business having the purpose of preserving the global environment,

such as preventing global warming

4) Preventing disruptions to international financial order or taking appropriate measures with

respect to damages caused by such disruption

Operational Fields

Governmental Bank (100% owned by the Government of Japan)

Status

Contributing to the sound development of Japan and the international economy and society

Mission

Japan Finance Corporation

(JFC)

（Crisis Response）

（International Finance）

Japan Bank forInternational Cooperation (JBIC)

OECOs

October 1999

（Domestic Finance）

Micro Business and Individual Unit

Ex. Overview of Organizational Restructuring

JICA

October 2008

IFOs

JBIC

Ex

po

rt-Imp

ort B

ank

of

Japan

(JEX

IM)

IFOs: International Financial

Operations

Agriculture, Forestry, Fisheries and Food Business Unit

Small and Medium Enterprise Unit

April 2012

OECOs: Overseas Economic

Cooperation Operations

Ov

erseas Eco

no

mic C

oo

peratio

n

Fu

nd

(OE

CF

)

Japan Bank forInternational Cooperation (New JBIC)

Natural Resources

IndustriesMissions Financial Crisis

JBIC Facilities

Financing import of natural resources to Japan

Financing export from Japan

Financing overseas investments & natural resource developments undertaken by Japanese companies

Financing projects related with improving Japanese companies’ business environment, such infrastructures as port, railway, power generation

Overseas Investment LoansImport LoansExport Loans Untied Loans

2. JBIC Mission and Financial Tools

GuaranteesEquity Participation

Environmental Preservation

I. JBIC Profile

II. Energy Circumstances Surrounding Japan

III. JBIC’s support to secure Natural Resources

IV. JBIC Activity in Australia

3. Trends in the Import volume of Energy

（兆円）

Oil

LNG

Coal

0

5

10

15

20

25

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Oil LNG Coal

（兆円）

Oil

LNG

Coal

(Source： Ministry of Finance trade statistics）

4. Analysis of Trade Deficit Expansion（2010-2013）

Trade

Balance（Billion Yen）

Trade

Balance(2010)

Other

Import

Increase

0

+6,635

（ +2,375 ）

（ ▲4,950 ）

（ ▲3,587）

（ ▲11,940 ）

Trade

Balance(2013)

▲11,468

Change inTrade Balance（▲18,103）

LNG

Import

Increase

Blue：Positive factor for trade balance

Red ：Negative factor for trade balance

41.7%

58.3%

Price ：▲3,819

Volume ：▲8Yen Rate ：▲1,123

Price ：▲2,015

Volume ：▲1,086Yen Rate ：▲486

Export

IncreaseOil

Import

Increase

0

10

20

30

40

50

60

70

80

90

100

1995 1998 2001 2004 2007 2010 2013

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1995 1998 2001 2004 2007 2010 2013

0

100

200

300

400

500

600

700

800

900

1,000

1995 1998 2001 2004 2007 2010 2013

0

20

40

60

80

100

120

140

1995 1998 2001 2004 2007 2010 2013

LNG Import Price Currency Rate

LNG Price

LNG Import Volume

+46.3%

+25.0%

（Billion Yen）

（USD/MT）

（Million MT）

（Yen/USD）

Change

+103.3%（2010→2013） +11.2%

Source）Trade Statistics of Japan

LNG Import Amountt

LNG Import Value

0

2

4

6

8

10

12

14

16

18

20

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

LN

G im

port

pri

ce（U

SD

/M

MB

tu）

US UK Japan

(Source：Import statistics of US, UK and Japan)

5. Japan’s LNG Import Price

Oil linked Japanese LNG price shows highest price by 5 – 10

USD/MMBtu as compared with that of Europe and the US.

+ Liquefaction Cost+ Transportation Cost

I. JBIC Profile

II. Energy Circumstances Surrounding Japan

III. JBIC’s Activity in Natural Resources

IV. JBIC’s Activity in Australia

Frade Oil Field, Brazil

Kashagan Field,

Kazakhstan

ACG Field,

Azerbaijan

LNG, Qatar Advance Payment Loan to VINACOMIN

Marcellus Shale GasKharassan Uranium Mine, Kazakhstan

MOZAL Aluminum Smelter,

Mozambique

Ambatovy Nickel

Pagardewa Oil Field, Indonesia

Gas Fields, MalaysiaTiga LNG, Malaysia

Tangguh LNG, Indonesia

Enfield /Vincent Oil Field

Cape Lambert Iron Ore Shipping Port

Rolleston Mine

BayuUndan LNG

Neryungri Mine, Russia

SakhalinⅠ, Russia

SakhalinⅡ, Russia

Pogo Gold Mine

Oil & Gas Field

Cerro Verde Mine, Peru

Los Pelambres Mine, Chile

Escondida Mine, Chile

METOR Methanol, Venezuela

CENIBRA Pulp, Brazil

British North Sea Oil Field

Norwegian North Sea Oil Field

BTC Pipeline

Advance Payment Loan to ADNOC

NAMISA Mine, Brazil

MUSA Mine, Brazil

Moolarben Mine

Pluto LNG

Tungsten Mine,

Portugal

Worsley Bauxite Mine & Alumina Refinery

Kangean Oil & Gas Field PNG LNG

▲Oil ■Copper

●Natural Gas ▲Other Mineral

■Coal Resources, etc

■Iron Ore

Similco Mine, Canada

San Cristobal Zinc Mine, Bolivia

AMAZON Alumina Refinery/

Aluminum Smelter, Brazil

Esperanza Mine, Chile

Forestation, NewZealand

Assmang Iron, Zinc,

Chrome Ore Mine, South Africa

Logistical Support for Iron Ore

Transportation, BrazilGorgon LNG

Cordova Shale Gas

Shark Bay Salt Field

West Mynkuduk Uranium Mine,

Kazakhstan

Caserones Copper Mine, Chile

Purchasing oil product from PDVSA,

Venezuela

Curtis LNG

Taganito Nickel Project

Tayan Alumina Project

Woodchip, Mozambique

Rasp Zinc & Lead Mine

Wheatstone LNG

Bayovar Phosphate Mine, Peru

Grande Cache Coal Mine

Alouette Aluminium Smelter

Drummond Project, Columbia

Sierra Gorda Copper Mine, Chile

Promoly Project, Chile

Eagle Ford Shale Oil & Gas

IGBC Shale Gas

Montney Shale Gas

Suska Sukunka MineCoal Bed Methane

Forestation, Brazil

■Caval Ridge Mine

■Isaac Plains Mine

■Byerwen Mine

■Kestrel Mine

■Minerva Mine

As of Aug 31, 2014

Permian Basin Tight Oil

Woodchip

Oil Field, UAE

Stock Acquisition of Anglo American Sur, Chile

Ichthys LNG

6. Major Projects Over the Last 10 Years

（ Amount of loan for natural resource projects（signed）: Approx US$75 Billion）

Prelude FLNG

Roy Hill Mine

Boggabri Mine

Jimblebar Mine

Equatorial Guinea LNG

Tempa Rossa Oil Field

Antucoya Copper Mine, Chile

Hangingstone Oil Sands

West Angelas Mine

Development of Field

Infrastructure（Railway/Port/Electricity, etc.）

Downstream (Petrochemical, Refinery, etc.)

Acquisition of Participating Interest

JBIC

7. JBIC’s Support to various phases of value chain

Import

Transportation (Pipeline, Vessel, etc.)

8.JBIC’s Strategies for LNG Projects

Middle Stream

LNG Plant

Foreign

Countries

Japan

For

Domestic Use

Electric

Power Plant

Transmission

Line

Pipeline

Gas Producing

Country

For Export

Government-managed

Electric Company

Government-managed

Oil & Gas Company

Government of

Gas Producing CountryRoad・Infrastructure

Finance Sector

Pipeline

Strategic Partnership

Oil・Gas Majors

Up Stream

Gas Field

Development

Trading Companies

& Others

Engineering

Companies

Vessel

Companies

Shipping

Companies

Infrastructure

around

LNG project

LNG Vessel LNG Vessel

LNG Receiving Terminal

A: Natural Resource

Development Facilities

B: Overseas Investment Loan

C: Export Credit

D: Untied Loan

E: Public Bond Guarantee

Issue

Samurai Bond

LNG Buyers

General Investment,

Manufacturing Industry

JBIC can support the project developing gas for domestic use and for export.

Coal

Fired

Power

Station

9. JBIC’s Strategies for Coal Projects

Coal

Equity

Participation

Coal

Coal Field Development

Infrastructure

（Railway,Port,etc.）

Equipment

Equipment

J/VExport

Offtake

Coal

Equity Participation

（IPP）

J/V

(manufacturing)

Japanese Company

Equity

Participation

JBIC

Export

I. JBIC Profile

II. Energy Circumstances Surrounding Japan

III. JBIC’s Activity in Natural Resources

IV. JBIC’s Activity in Australia

16

Jansz-lo

Abadi

Blacktip

Cape Lambert Port Expansion & West

Angelas Iron ore Mine DevelopmentAlbany Forestation

Adelaide Forestation Project

GPFL

Tasmania Forestation Project

BPFL

Forestation Iron Ore Salt Copper Aluminum, Bauxite

LNG Oil/LPG

Echuca Shoals

*Operator

Yolla

Uranium

Puffin SW

Montara/Skura

Angel

Longtom

Perseus

Stybarrow

Cliff Head

WandooWoolybutt

Onslow Salt

Coal

Worsley Alumina Joint

Venture

Boyne Smelters Limited

Kestrel Coal Mine

Rollestone Coal MineBrisbane

Sydney

Melbourne

Adelaide

Perth

Canberra

Yandi Iron OreMine

Moolarben Coal MineVincent/Enfield/Laverda

Oil

〈300MMbbl〉

Pluto Gas〈Gas 5ｔｃｆ、Condensate 59

million bbl〉

Gorgon Gas 〈42ｔｃｆ〉

Darwin LNG〈3.4tcf〉

North West Shelf Gas 21.6tcf~〉

Oaky Creek Coal Mine

Collinsville Coal Mine

Newlands Coal Mine

Portland Aluminium Smelter

Queensland Curtis 〈17.3tcf〉

2014～

Minerva Coal Mine

Zinc

Rasp Zinc Mine

Wheatstone Gas 〈8.9tcf~〉

SharkBay Salt

Byerwen Coal Mine

Isaac Plains Coal Mine

Roy Hill Iron Ore Mine

Jimblebar Iron Ore Mine

Boggabri Coal Mine

Caval Ridge Coal Mine

Ichthys Gas〈Gas 12.8tcf~、Condensate 530

million bbl〉

10. Major Projects in Australia Financed by JBIC

As of Aug 31, 2014

11. LNG Supply Source to Japan

Australia, 17.4%

Qatar, 14.7%

Malaysia, 19.6%

Brunei, 7.8%

Indonesia, 11.8%

UAE, 7.2%

Oman, 5.0%

Nigeria , 2.4%

Russia, 9.1%

Others, 5.0%

Australia, 18.2%

Qatar, 18.0%

Malaysia, 16.5%

Brunei, 6.8%

Indonesia, 7.1%

UAE, 6.3%

Oman, 4.5%

Nigeria , 5.4%

Russia, 9.5%

Others, 7.6%

Australia, 20.4%

Qatar, 18.3%

Malaysia, 17.2%Brunei, 5.8%

Indonesia, 7.1%

UAE, 6.2%

Oman, 4.5%

Nigeria , 4.3%

Russia, 9.9%

Others, 6.3%

201120122013

87.7mil tons 87.3mil tons78.5mil tons

(Source: IHS Energy)

12. Coal Supply Source to Japan

(Source： Ministry of Finance trade statistics）

201120122013

Australia64%

Indonesia19%

Russia6%

Canada5%

U.S.3%

China1%

Vietnam1%

etc.1%

Australia62%

Indonesia19%

Russia7%

Canada5%

U.S.3%

China2%

Vietnam1%

etc.1%

185.2mil tons

Australia60%

Indonesia20%

Russia6%

Canada5%

U.S.4%

China3%

Vietnam1%

etc.1%

175.2mil tons

191.5mil tons

13.Prime Minister Abbott and Prime Minister Abe Joint Statement“Special Strategic Partnership for the 21st Century” (July 2014)

<COAL>

The two leaders shared the view that promoting the

introduction of higher efficiency coal-fired power plants

is a realistic measure in addressing climate change

considering the fact that many countries opt for coal-

fired power generation due to coal’s affordability and

availability, and recognised the importance of sharing

such a view in international fora.

<LNG>

The two leaders confirmed the continued importance of

stable and secure trade and investment in liquefied

natural gas (LNG) at competitive prices based on

market principles, and the importance of the further

promotion of flexible gas markets.

(Source: HP of PRIME MINISTER of Australia)

（Source：World Energy Outlook／ 2013）

Fired Power Station by source

Electricity generation by source (OECD and Non-OECD)

14.Coal Fired Power Plant as an Important Electricity Generation Fuel

Coal61%

Gas32%

Oil7%

Coal59%

Gas23%

Oil18%

7,488 TWh

2011 1990

15,049 TWh

21

Ex. Natural Resources Development Finance to Post-Combustion Carbon Capture- Enhanced Oil Recovery Project

USA/ CO2-Enhanced Oil Recovery (EOR) project

JBIC provided finance (Overseas investment loan), in July 2014, to the project which is a post-

combustion carbon capture-enhanced oil recovery project. The borrower builds a carbon capture

system (CCS) in the coal-fired power plant and increases oil recovery at the oil field in Texas, by

injecting the CO2 removed from the flue gas of the power plant.

Japanese company is participating indirectly in the project by investing equity and acquired a

disposal right of crude oil production commensurate with existing interest.

Borrower

Petra Nova Parish Holding LLC

Sponsor

JX Nippon Oil & Gas Exploration

Corporation (Japan) : 50%

NRG Energy Inc.(U.S.) : 50%

Total co-financed amount

USD 2.5 million

Increase of oil production

500b/d to 12,000b/d

We appreciate your attention.