Fukushima disaster means Japan needs more gas from new resource

Japan will receive the first shipment of liquefied natural gas from a project led by Exxon Mobil in Papua New Guinea, project developers said.

Tokyo Electric Power Co. bought the first cargo of LNG from the partnership in charge of the $19 billion facility.

The Japanese energy sector has taken on more LNG in response to the shortage of power brought on by the 2011 meltdown at the Fukushima Daiichi nuclear power plant, operated by TEPCO.

Construction at the LNG facility in Papua New Guinea began in 2010. Its first section went into service in April and the entire facility can produce 6.9 million tons of LNG per year.

More than 400 miles of natural gas pipeline from production and processing facilities in Papua New Guinea are associated with the LNG terminal.

Peter Graham, regional project director for Exxon Mobil, said in a statement the LNG delivery to TEPCO was good not only for a Japanese economy hedging its bets against nuclear power, but good for Papua New Guinea's economy.

"Revenue from the PNG LNG Project will support Papua New Guinea's continued economic and social development," he said. "The PNG LNG Project demonstrates to the world what Papua New Guinea is capable of delivering."