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## Strong Position in LNG Plant Business 

Base-load LNG plants built by Chiyoda are currently producing more than 28 million tons per annum (mtpa). In addition, Chiyoda continues to be awarded Front End Engineering and Design (FEED) or Project Specification (PS) works by major LNG projects, which results in mea- surable benefits for project investors. Chiyoda is also a leading contrac- tor of LNG receiving terminals, mainly in Japan. 

Chiyoda continues to develop the state-of-the-art technology, design and project execution in gas processing and LNG chain to enable devel- opers to create viable gas/LNG trade schemes for investors in competi- tive and changing markets. A core competence at Chiyoda is high-cal- iber people with the experience and expertise to meet the challenges inherent to large-scale, fast-track, cost-effective gas processing projects with the highest quality engineering. 

## Sakhalin II LNG Project 

Chiyoda, along with Toyo Engineering Corporation (TEC) and Russian corporations, signed an EPC contract with Sakhalin Energy Investment Company Ltd. (SEIC) on June 2, 2003 for a grass-roots liquefied natural gas plant complex that is part of the Sakhalin II Project. SEIC is owned by Shell Sakhalin Holdings B.V. (55%), Mitsui Sakhalin Holdings B.V. (25%), and Diamond Gas Sakhalin B.V. (20%). 

The project construction site is located at Prigorodnoye on southern Sakhalin Island in Russia. The site is also about 160 km from Wakkanai, the northernmost tip of the 

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Japanese island of Hokkaido. The plant will consist of two LNG trains, each with a produc- tion capacity of 4.8 million tons per year, the largest in the world. The first train is planned to be operational in 2007. Shell’s Double Mixed Refrigerant (DMR) liquefaction process will be used for the first time in a base-load LNG plant. The LNG plant also includes two 100,000 cubic meter LNG tanks and an LNG loading jetty. 

Chiyoda provides services in the fields of engineering, procurement, and construction for global LNG projects, and it holds about a 30% share of EPC work for major base-load 

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LNG projects worldwide. 

Chiyoda’s outstanding technical competence and successful track record in base-load LNG projects around the world, including the recent Qalhat LNG pro- ject led to the Sakhalin contract award. 

After projects in Qatar and Oman, Chiyoda has continued to secure con- 

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tracts for base-load LNG projects, evidence of an overwhelming strength in the LNG field. 

For the Sakhalin LNG project, Chiyoda per- formed project specification (PS) work in a joint venture with Fluor Daniels of The Netherlands and OAO NIPIgaspererabotka. 

This is the first LNG project in Russia, which has the world’s largest natural gas reserves, and will be the cornerstone of future gas- related projects in that country. 

