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| July 27, 2006 No.1124 | ||
| MHI Receives Order for Two LNG Tanks From Cheniere Energy of the U.S. |
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| Tokyo, July 27, 2006 - Through the consortium of Mitsubishi Heavy Industries America, Inc. and Zachry Construction Corporation, a major construction company in the U.S., Mitsubishi Heavy Industries, Ltd. (MHI) has received an engineering, procurement and construction contract for two LNG storage tanks from Sabine Pass LNG, L.P., a wholly owned subsidiary of Cheniere Energy, Inc., a major U.S. LNG terminal owner and operator. The tanks are to be built at Cheniere's Sabine Pass LNG receiving terminal that is currently under construction on the coast of the Gulf of Mexico in Louisiana. The order amount to the consortium is approximately 16 billion yen. | ||||||
The contract calls for engineering, procurement and construction of two 160,000 cubic meter (approximately 5.65 million cubic feet) LNG storage tanks. MHI is responsible for engineering and construction of the LNG tanks, while Zachry Construction will handle civil engineering of the site and installation work of the tanks. The construction will commence next month with completion scheduled to be in the spring of 2009. When the terminal expansion that includes two additional LNG tanks is completed, the Sabine Pass LNG receiving terminal will have a natural gas processing capacity of 114 million cubic meters per day, or 4.0 Bcf/d (billion cubic feet per day). Cheniere Energy, Inc., based in Houston, develops and manages LNG receiving terminals. Currently, the company is constructing and developing three LNG receiving terminals along the U.S. coast of the Gulf of Mexico. In addition to Sabine Pass, Louisiana, the company is also constructing the terminal in Corpus Christi, Texas, and planning an LNG receiving terminal project in Creole Trail, Louisiana. While demand for natural gas is sharply increasing in the U.S. as a part of diversification of energy sources, North American natural gas reserves are decreasing. Therefore, the construction of LNG terminals has been spurred to accommodate the expected sharp increase in LNG imports. As more than 20 LNG receiving terminals are being planned in North America, MHI expects to secure more orders from the planned terminals. On the strength of successive orders and in view of the robustness of the American LNG tank market, MHI will further strengthen its aggressive marketing activities there. # # #
About Mitsubishi Heavy Industries Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 2,792 billion yen in fiscal 2005 (year ended March 31, 2006). MHI's diverse lineup of products and services encompasses shipbuilding, steel structures, power plants, chemical plants, environmental equipment, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website (http://www.mhi.co.jp). PRESS CONTACT: Hideo Ikuno: h.ikuno@daiya-pr.co.jp Tel: +813-6716-5277, Fax: +813-6716-5929 Daiya PR (in charge of public relations for Mitsubishi Heavy Industries, Ltd.) |
