Development of Higashi-Niigata Oil and Gas Field

Higashi-Niigata Oil and Gas Field is located in the near shore waters of the Agano River of Niigata City. Our company, originally Nippon Gas and Chemical Engineering (Corp.), was founded in Niigata in April 1951 for the purpose of manufacturing chemical products such as Methanol and Ammonia to use natural gas as the raw material. To realize this it was necessary to independently own a gas field, and so land and offshore mining rights for the area near Higashi-Niigata Oil and Gas Field were acquired. From 1956, our company has proceeded to develop the natural gas dissolved in water and the non-associated natural gas existed in shallow formations (up to the depth of about 600m) in this area, and drilled around 100 wells. Since Higashi-Niigata Oil and Gas Field, a non-associated natural gas field deep beneath our company’s Niigata Plant, were discovered in 1959, we have been proceeding with exploration and development over for 60 years in cooperation with Japan Petroleum Exploration Co. Ltd. Also, since 1981, our company has resumed independent exploration and development targeting the non-associated natural gas which exists in relatively shallow formations of this field. The natural gas produced from Higashi-Niigata Oil and Gas Field has been a reliable source of raw materials and fuels used by our Niigata Plant for the manufacturing of chemical products.