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- Mitsui & Co., Ltd.
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Mitsui & Co., Ltd. ("Mitsui") agreed with Kinder Morgan and the Mexican state owned oil company, Petróleos Mexicanos ("PEMEX") to participate in the pipeline project in Arizona to export US natural gas to Mexico. Mitsui will participate in and acquire, through its 100% owned US company MIT Pipeline Investment Americas, Inc., a 30% ownership stake in the project company, Sierrita Gas Pipeline LLC ("Sierrita").
MGI Enterprises US LLC a wholly owned affiliate of Pemex Gas y Petroquímica Básica which is a subsidiary of PEMEX will participate in and acquire a 35% ownership stake in Sierrita . Mitsui and PEMEX entered into an MOU on April 9, 2013 for the collaboration in the energy business such as natural gas, and this investment in Sierrita marks the first joint venture project to be undertaken under such MOU.
The project interconnects with the US main gas pipeline system and will extend south from Tucson to Sasabe in Arizona, a new interconnection point near the border between the US and Mexico. The project will have a design capacity of approximately 200 million cubic feet per day, and its estimated project cost is approximately $200 million. MGI Supply, Ltd a wholly owned affiliate of Pemex Gas y Petroquímica Básica which is a subsidiary of PEMEX has executed a 25-year transportation service agreement with Sierrita for the full design capacity of the project. The project is expected to achieve an in-service date no later than September 30, 2014, subject to approvals from the US Federal Energy Regulatory Commission and the issuance of the Presidential Permit.
Supported by the development of the shale gas projects in the US and Mexico and the stable growth of the Mexican economy, it is expected that the demand for the natural gas in Mexico will continue to increase. Through the cooperation with PEMEX and Kinder Morgan on the realization of this project, Mitsui will continue its efforts to contribute to the stable supply of energy through the expansion of the natural gas value chain both in Mexico and the US.
|Project Description||Gas transportation service between Tucson and Sasabe, Arizona|
|Pipeline Length||Approximately 100km|
|Project Period||25 years|
|Ownership||Mitsui 30%, PEMEX 35%, Kinder Morgan 35%|
|Project Cost||Approximately US$200 million|
|In-Service Date||September 30, 2014|
|Year of Foundation||1997|
|Headquarter Location||Houston, Texas, USA|
|Core Business||Transportation and storage of oil and gas|
|Pipeline Assets||Approximately 130,000km|
|Year of Foundation||1938|
|Headquarter Location||Mexico City, Mexico|
|Core Business||Exploration, production, transportation, storage, refinement and sales of oil and gas|
|Pipeline Assets||Approximately 9,000km|
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.