The North West Shelf Liaison Company Tokyo Office (NWSLO) was established in 2002 to support marketing and sales of liquefied natural gas (LNG) produced at the North West Shelf Project off the coast of Western Australia.       Mr. Tetsuya Mizuno, Senior Manager of the NWSLO, talks to the Monitor about the North West Shelf Project, the NWSLO’s activities and the successful conclusion of a hugely significant supply agreement with Japanese energy companies. Tetsuya Mizuno,Senior Manager, North West Shelf Liaison Company Tokyo Office

Could you please explain about the North West Shelf Project to Monitor readers? First of all, it is one of the world’s largest natural resource development efforts, with total production reaching somewhere in the magnitude of 540,000 crude oil barrel-equivalent per day. The main product is LNG, of which more than 12 million tons are produced per year. Of this, 9.5 million tons are exported to Japan annually—about one-seventh of all LNG imported to Japan over a year.       Mitsubishi Corporation participates through Japan Australia LNG (MIMI) Pty. Ltd., a 50-50 joint venture with Mitsui & Co., alongside five international oil companies—The Royal/Dutch Shell Group of Companies, BP, BHP Billiton, Chevron and Woodside Petroleum Ltd.

		What is the role of the NWSLO?
We are part of the Australia Unit, which manages and oversees Mitsubishi Corporation’s involvement in the North West Shelf Project. Our role is to facilitate the marketing and sales of North West Shelf Australia LNG, which is in charge of marketing and contract negotiations for the project, and we primarily target the major electric and gas companies in Japan.       A typical day for my two staff and I involves coordinating with parties in Australia and engaging customers in Japan. It is essential to build and nurture trust with both buyers and sellers. In today’s rapidly changing energy market, there are many issues that need to be negotiated—this was especially the case with the recent renewal of our 20-year supply agreement with eight electricity and gas companies in Japan.

		Could you please tell us about the new agreement?
This renewal was a challenge, but also ultimately a big success. The environment surrounding the LNG business has changed a lot over the past 20 years. When the original agreement was signed, buyers of LNG were essentially limited to Japan, but in recent years, demand in newly emerging economies such as China and India has surged. It has become a seller’s market, and we’ve had to present our customers with tougher terms—and this has made it more difficult to conclude a deal.       However, after negotiations in which we managed to resolve the concerns of all parties involved, we reached a full extension of the contract that will account for approximately 10% of Japan’s LNG supply.

		That’s a huge achievement. What personal qualities do you need to conclude such a tough negotiation process?
That’s a difficult question. I have been involved in trading petroleum products and developing new LNG projects ever since I joined Mitsubishi Corporation, and also served overseas. But in negotiations, you need more than expertise?½\communication skills are also vital. You must be able to effectively express your thoughts in your own words, and past experiences allow you to speak with conviction. Essentially, this work boils down to interpreting developments at various junctures and deciding how to communicate these to other parties.

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