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
||5-6-4, Tsukiji, Chuo-ku, Tokyo, Japan
||Mr. Tatsuya Takaoki (Seconded form MES)
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