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Establishment of NGH Japan Co., Ltd. To be a pioneer for the commercialization of Natural Gas Hydrate Technology

Apr. 19, 2007


Mitsui Engineering & Shipbuilding Co., Ltd.
Mitsui & Co., Ltd.


Main Contents

Mitsui Engineering & Shipbuilding Co., Ltd. ("MES") and Mitsui & Co., Ltd. ("Mitsui") announced the establishment of a new joint venture Japanese company "NGH Japan Co., Ltd. ("NGHJ", its shareholding ratio: MES/80%, Mitsui/20%)" for the purpose of the development and commercialization of Natural Gas Hydrate ("NGH") technology that will create a new supply chain of the natural gas.

"NGH" is the artificially formed material in sherbet state stabilizing at a temperature of minus 20 degrees Celsius at atmospheric pressure, which contains natural gas components. NGH is expected to be appropriate for the transportation and storage of the natural gas in view of its safe and easy handling, the economic competitiveness and the eco-friendly production process. NGH is produced at a milder temperature comparing to -162 degree C for the production of Liquefied Natural Gas ("LNG"), the initial capital expenditure for the facilities in the supply chain (production, palletizing, vessel, storage and re-gasification) is estimated to be 20-25% lower than that for LNG.

MES and Mitsui have combined their expertise, including MES' engineering technology, intellectual properties for the formation, palletizing, storage and re-gasification of NGH and Mitsui's global natural gas marketing network and the project management experience by the establishment of NGHJ, and will pioneer commercialization of NGH globally.

NGH is expected to be able to provide the solution for the stranded gas field monetization which is presumed to be difficult to develop economically with the existing technology. Further, NGH has potential to be a new portable and economical media for the natural gas supply to the area which is isolated from the current gas pipeline system. Hence, NGH will contribute to the growth of the safe and eco-friendly natural gas usage all over the world.

In addition to the above, NGH technology has the possibility to divert towards other applications such as the extraction and transportation of "Methane Hydrate" which exists in the permafrost area and under seabed as natural resource and the storage and transportation of carbon dioxide in state of hydrate.

NGHJ is aiming to raise the NGH technology to supply 10 million metric ton/year (LNG equivalent) of natural gas to global consumers in 2020-2030. To achieve this, NGH sets the milestone in approximately 2012-13 as the time for the transition to commercialization of NGH supply chain project and is planning to conduct the feasibility study and implement the pilot project to demonstrate the marine transportation and scale up the technology with some strategic partners.

NGH Japan Co., Ltd.

(1) Business Objectives Technology Development and Business Development of NGH
(2) Shareholders MES/80%, Mitsui/20%
(3) Address 5-6-4, Tsukiji, Chuo-ku, Tokyo, Japan
(4) President Mr. Tatsuya Takaoki (Seconded form MES)

Notice:
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui Engineering & Shipbuilding Co., Ltd.
Corporate Communication Department
Mr. Takaoka
Telephone: +81-3-3544-3147
Facsimile: +81-3-3544-3050
Mitsui & Co., Ltd.
Corporate Communication Division
Mr. Asada
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819