Japan, China Need to Create “Special Laws” for Gas Project – Minister

Text of report in English by Japan’s largest news agency Kyodo

Tokyo, 20 June – Japan and China will have to create their own special laws for launching their joint gas exploration project in an untapped area in the northern East China Sea, industry minister Akira Amari said Friday.

For the participation of the private sector in the project, Amari told a news conference that Japan and China will need to have the special laws in place after concluding a bilateral pact for the project in the area around the Asunaro gas field, called Longjing in China.

Earlier this week, the two countries also announced their deal for Japan’s investment in an ongoing Chinese gas development project for a gas field stretching across the Japanese-claimed median line, after four years of talks on potential resources in the disputed waters.

Tokyo and Beijing still need to work out details of the two projects, including the percentage of Japanese investment in the ongoing project and exact sites for joint exploration.

Amari said the Japanese special law requires approval from the government and the Diet and “it is difficult to tell when” the bill will be drawn up.

He also said Japanese companies with the necessary technological expertise such as Teikoku Oil Co and Nippon Oil Exploration Ltd. are seen as the main candidates to take part in the projects.

Originally published by Kyodo News Service, Tokyo, in English 0452 20 Jun 08.

(c) 2008 BBC Monitoring Asia Pacific. Provided by ProQuest Information and Learning. All rights Reserved.