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Chiyoda Group Secured LNG Train 5 EPC Contract in Qatar

Source: 7/6/2004, Location: Middle East

Yokohama, Japan - July 6, 2004 - Chiyoda Corporation(ISIN:JP3528600004), the leading engineering and construction company in Japan, announced that the Joint Venture of Chiyoda Corporation and Snamprogetti S.p.A (Milan, Italy) has been awarded a contract for engineering, procurement and construction (EPC) of LNG Train 5 Plant Project, and other related facilities from Ras Laffan Liquefied Natural Gas Company Limited (II) (RasGas II: Qatar Petroleum 70% and Exxon Mobil 30%) in the State of Qatar.

This LNG Train 5 project will be built adjacent to the existing LNG Train 3 successfully completed in December, 2003, and Train 4 now being executed, both by the Joint Venture of Chiyoda and Snamprogetti.

This project will utilize the natural gas resources from the world's largest non-associated gas reserve (900 TCF) in Qatar's North Field and produce 4.7 million tons per annum of LNG, the world largest single train capacity. LNG Train 5 will be completed by the end of 2006 and start delivering LNG cargoes in the first quarter of 2007.

The front end engineering design (FEED) work for LNG Train 5 project was also executed by Chiyoda. The JV's capability was proven in the Train 3 project, and further established by the successful record of Chiyoda in other Qatar projects.

The award of this project also represents a continuation of EPC contracts in Qatar for Chiyoda following Qatargas LNG Trains 1/2/3 contracts completed in 1988, its Debottlenecking Project awarded in 2001, RasGas Trains 3/4 and the Al Khaleej Gas Project, which show Chiyoda's competitive stronghold in the business of gas value chain in the Middle East region.

The demand for LNG as clean energy is showing a steady increase not only in the Pacific Rim countries but also in Europe and US markets. Chiyoda is highly experienced in LNG plant projects as well as LNG receiving terminals, and will provide services on a global basis including the Middle East, Russia and South East Asian regions, where a number of future gas value chain projects are expected.

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