As reported earlier in EnergyReview.net, both China and Japan are at loggerheads over the Xihu Trough project which Japan claims could violate its Exclusive Economic Zone, a zone which China does not recognise.
In a statement Japan’s Minister of Economy, Trade and Industry Shoichi Nakagawa said, “Japan will continue exploring for natural gas resources despite Wednesday’s announcement by oil majors that they would pull out of a Chinese-led natural gas project in the East China Sea.”
“Japan has remained unaffected by it. We will keep on implementing it,” added Nakagawa, referring to Japan’s continuing natural gas exploration activities within its waters off the coast of Japan.
On the matter of the Unocal and Shell pullout, Nakagawa stated, “I have heard that they have judged that the project would not be commercially profitable. Their judgments are based on economic considerations. Japan’s natural resources exploration is different from theirs.” He did not elaborate further.
The Xihu Trough natural gas development project covers an area of around 22,000 sq km and covers the Chunxiao gas field which is due for production in mid-2005.
