Methane hydrate is a sherbet-like solid formed by methane gas, the main component of natural gas, captured inside water molecules, and is attracting attention as a new energy resource. It is known to exist in highly pressurized, low-temperature natural environments, embedded in a shallow layer below the seabed at a water depth of over 500 m or in permafrost layers near the north and south poles. Some estimate that offshore reserves of methane hydrate equivalent to more than a hundred years of national gas consumption are present within Japan's territorial waters. Hopes are high that these reserves of methane hydrate could significantly enhance Japan's energy self-sufficiency.

Development Plan: Results of Phase 1 (Fiscal 2002 to Fiscal 2009)

The physical properties of methane hydrate are fundamentally different from those of conventional natural gas, and its recovery poses technical challenges that have yet to be resolved. Recognizing the potential of methane hydrate from early on, JAPEX has been actively involved in the development of technology to overcome these challenges, playing a central role in joint research carried out between fiscal 1996 and fiscal 2000 with JNOC and a number of private-sector companies. In 2000, we conducted exploration drilling of the Nankai Trough offshore Shizuoka Prefecture within our block and became the first company in Japan to successfully collect a methane hydrate core in domestic waters. Building on these achievements, Phase 1 of a full-scale joint research effort involving the public and private sectors for utilizing methane hydrate was launched in fiscal 2002. The main activities of this plan are presented below. The results of Phase 1 research have demonstrated the potential of using methane hydrate present in the waters off Japan as an energy source.

Methane Hydrate Development Plan in Japan: Phase 1 (Fiscal 2002 to Fiscal 2009)
FY2002	First onshore production test in Canada
FY2003	3D seismic survey in the eastern section of Kumano-nada to Tokai-Oki
FY2004	Exploration drilling in the eastern section of Kumano-nada to Tokai-Oki
FY2007	Detailed assessment of reserve volume in the eastern section of Kumano-nada to Tokai-Oki
FY2007–FY2008	Second onshore production test in Canada
FY2009	Final assessment of Phase 1

Development Plan: Outline of Phase 2 (Fiscal 2010 to Fiscal 2016)

In Phase 2, we will build on the technical achievements gained in Phase 1 through offshore production tests in Japan's territorial waters to more reliably assess the potential of using methane hydrate as an energy resource, while also working to identify the technical challenges for commercially producing methane hydrate and conducting research related to environmental impact assessment. Plans are in place to engage in well drilling activities with the aim of conducting offshore production test in 2012.JAPEX will continue to play a central role as a member of the Steering Committee of the Research Consortium for Methane Hydrate Resources in Japan (MH21).