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Russia's Sakhalin II Project marked the commencement of LNG delivery

Mar. 29, 2009


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Sakhalin Energy Investment Company Ltd. (SEIC), the joint venture company for the Sakhalin II Project, owned by OAO Gazprom (Gazprom), Royal Dutch Shell plc (Shell), Mitsui & Co., Ltd. (Mitsui) and Mitsubishi Corporation (Mitsubishi) with Mitsui holding a 12.5% stake, marked the commencement of liquefied natural gas (LNG) delivery from SEIC's LNG plant, at port Prigorodnoye, Sakhalin Oblast of Russian Federation. This first cargo of LNG to Japan, will be taken by two of their foundation customers - Tokyo Gas Co., Ltd. and Tokyo Electric Power Company, Inc.

LNG production facilities of the Sakhalin II Project is composed of 2 LNG trains, with a total LNG production of 9.6million tonnes per annum. Approximately 60% of the LNG produced from the Sakhalin II Project will be supplied to customers in Japan.

Commencement of LNG delivery from the Sakhalin II Project will contribute to the stability of energy supply and diversification of energy sources for the Asia-Pacific region as a short-distance supply source from Japan as well as marking the first LNG delivery from the Russian Federation.

Mitsui, as a shareholder of SEIC, regards the commencement of LNG delivery, along with the commencement of year round oil production marked in December 2008, as a significant milestone of the Sakhalin II Project, and will continue to support SEIC towards establishing stable oil and LNG supply from the project.

Note for Editors
Sakhalin II Project

Sakhalin is a world-class oil and gas province, with estimated resources of some 45 billion barrels oil equivalent (boe). Sakhalin II is the largest integrated oil and gas project in the world, with total resources of some 4 billion boe.

Sakhalin Energy Investment Company Ltd. (SEIC) is the joint venture company established for the Sakhalin II Project. (Shareholders of SEIC are OAO Gazprom (50%+1 share), Royal Dutch Shell plc (27.5%-1 share), Mitsui & Co., Ltd. (12.5%) and Mitsubishi Corporation (10%)).

As Phase-1 of the project, SEIC commenced half year summer oil production which was limited to about six months of the ice-free season. As Phase-2 of the project, in December 2008, SEIC marked the commencement of year-round oil export from its new oil export terminal in Progorodonoye, located in the south of Sakhalin Island, and recently just marked the commencement of LNG delivery.

Peak oil production is planned to be 150,000 barrels per day, and LNG production is planned to be 9.6 million tonnes per annum. Approximately 60% of the LNG is planned to go to Japan and the remainder to South Korea and North America.

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 & Co., Ltd.
Investor Relations Division
Telephone: +81-3-3285-7910
Facsimile: +81-3-3285-9819
infoTKADZ@mitsui.com
Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-3-3285-7540
Facsimile: +81-3-3285-9819