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- Mitsui & Co., Ltd.
Corporate Communications Division
Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Masami Iijima) announced that Mitsui, through its newly established 100% subsidiary in the U.S.A., entered into a natural gas liquefaction tolling agreement and a joint venture agreement with Sempra Energy ("Sempra") on May 16, 2013.
Sempra is planning an LNG export project at Cameron in Louisiana, U.S.A. A 100% subsidiary of Sempra, Cameron LNG LLC ("Cameron LNG"), currently owns and operates the Cameron LNG receiving terminal and plans to develop liquefaction facilities with the export capability of 12 million tonnes per annum (MTPA)(4 MTPAx3 trains). The total development cost is expected to be in the range of $ 9-10 billion. First LNG production is targeted in the latter half of 2017, after receiving related approvals including export license for Non-FTA countries by Department of Energy (DOE).
Based on the natural gas tolling liquefaction agreement, Mitsui will secure 4 MTPA of tolling capacity for 20 years (*). In addition, based on the joint venture agreement, Mitsui will acquire a 16.6% equity interest in Cameron LNG Holdings LLC, which will be established as a holding company of Cameron LNG (*). Other equity holders will be Sempra (50.2%), a joint venture between Nippon Yusen Kabushiki Kaisha and Mitsubishi Corporation (16.6%) and GDF Suez (16.6%).
Global demand for natural gas and LNG is expected to grow in the medium to long term. Mitsui already owns upstream shale interests in Marcellus and Eagle Ford areas which contribute to natural gas production in U.S.A. In addition, through the above mentioned agreements, Mitsui will contribute to stable LNG production as well as stable energy supply to the global market including Japan.
(*) Both the natural gas tolling liquefaction agreement and the joint venture agreement will become effective subject to issuance of export license for Non-FTA countries by DOE, construction permit by FERC and satisfaction of other condition precedents.
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement 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.