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Final Investment Decision Reached on Cameron LNG Project

August 7, 2014

A final investment decision was made on August 6 (New York time) for Japan LNG Investment (JLI), a joint venture company between Nippon Yusen Kabushiki Kaisha (NYK) and the Mitsubishi Corporation (MC), regarding Cameron LNG (CLNG), a natural gas liquefaction and export business to be jointly owned together with Sempra Energy, GDF SUEZ S.A., and Mitsui & Co. Ltd.
 
This project is located in the U.S. state of Louisiana and will involve construction of new LNG liquefaction facilities and an export facility at the existing LNG receiving terminals held by CLNG. The total expense of the project — for building the plant for LNG operations, funding, investment in existing facilities, and other expenses — is expected to be about 10 billion dollars. A financing agreement for about 7.4 billion dollars has been agreed with the Japan Bank for International Cooperation and private banks. A portion of the financing by the private banks is insured by Nippon Export and Investment Insurance.
 
In June 2014, CLNG obtained permission from the U.S. Federal Energy Regulatory Commission to construct the liquefaction terminal and conditional permission from the U.S Department of Energy (DOE) to export LNG to countries with which the U.S. does not have a free-trade agreement. Full export approval is expected later this year from the DOE.
 
Export capability is expected to be approximately 12 million tons per annum and will be utilized from 2018 by GDF SUEZ S.A., Mitsui & Co. Ltd., and MC in accordance with a tolling agreement among the parties. Participation in this project will allow NYK to expand its presence in the entire value chain of an energy project and thus grow its potential to partner in new business opportunities such as this in the future.
 
In accordance with its medium-term management plan “More Than Shipping 2018,” NYK will continue its efforts to be a part of the stable supply of LNG.
 
 
Schematic Diagram

Image of Completed Terminal

Outline of each company
 
·         Sempra Energy
 

Head Office:
San Diego, California, USA
Description of business:
The largest power generation and gas distribution company on the U.S. West Coast
Representative:
Debra L. Reed, chairman and CEO?
Established:
1998
Number of Employees:
Approx. 17,000 (as of December 2013)

 
·         GDF SUEZ
 

Head Office:
Paris, France
Description of business:
A global energy player and an expert operator in the three key sectors of electricity, natural gas, and energy services, including gas trading and shipment operations, and an impressive track record in the LNG business
Representative:
Gérard Mestrallet, chairman and CEO
Established:
July 22, 2008
Number of Employees:
Approx. 147,200 (as of December 2013)

 
·         Mitsui & Co. Ltd.
 

Head Office:
2-1, Otemachi 1 Chome, Chiyoda-ku, Tokyo, Japan
Description of business:
A diversified and comprehensive trading, investment, and service enterprise that develops business in the fields of iron & steel, metals, infrastructure and transportation systems, chemicals, energy, food and consumer products and services, and innovation & corporate development businesses.
Representative:
Masami Iijima, president
Established:
July 25,1947                      
Number of Employees:
48,090 (as of March 2014)

 
·         Mitsubishi Corporation
 

Head Office:
3-1, Marunouchi 2 Chome, Chiyoda-ku, Tokyo
Description of business:
A global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business.
Representative:
Ken Kobayashi, president
Established:
April 1,1950                      
Number of Employees:
68,383 (as of March 2014)

 
·         Cameron LNG (CLNG)
 

Head Office:
San Diego, California, USA
Description of business:
Operation of the Cameron LNG Terminal located in Hackberry, Louisiana
Representative:
Jim Knudsen, CEO
Established:
2001
Number of Employees:
Approx. 100 (as of July 2014)

 
·         Japan LNG Investment (JLI)
 

Head Office:
Delaware, USA
Description of business:
Consortium to invest in Cameron LNG
Representative:
Masatsugu Kurahashi, president and CEO
Established:
2013

 
Reference: NYK Press Release, May 17, 2013
NYK Establishes Consortium for Cameron LNG Project

http://www.nyk.com/english/release/2446/002625.html

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