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## Natural Gas Projects 

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In overseas markets, Japanese electric power companies, which are major users of liquefied natural gas (LNG), have suspended operation of their nuclear electric power plants one after another. As a result, operating rates of LNG-fired power plants have remained high, spurring prospective LNG suppliers to aggressive marketing efforts in Japan. India, which has contracted with RasGas II project for 7.5 million tons per annum, and the People’s Republic of China, which entered into agreements to purchase LNG from Australia and Indonesia, are emerging as new LNG importing countries. What’s more, imports of LNG to the United States, where natural gas prices are soaring, and to European countries, where deregulation has brought newcomers into the gas supply business, are increasing. Overall, these factors mean long-term demand for LNG is on an upward trend. 

Plans for construction and expansion of gas processing, LNG and LPG plants are brisk in Middle Eastern countries including Oman, Qatar, and the U.A.E. 

Capitalizing this backdrop, we have received orders for large-scale projects such as Train 4 for the RasGas onshore expansion in Qatar, the Qalhat LNG in Oman, the Al-Kaleej gas development phase 1 in Qatar, and a gas processing plant in the central part of Sumatra, Indonesia. 

Recently, growth of the gas utilization business field resulted in expansion of our engineering services so we reorganized our LNG operations into Natural Gas Value-Chain operation. We will develop sales activities to cover a variety of natural gas-related projects from upstream to final market, aimed at most effective use of natural gas resources. 

Projects completed in the fiscal year 2003 include DCS retrofitting of the LNG plant of PT.Badak NGL, upgrades of FEED work at Oman LNG Plant from Shell Global Solutions International B.V., and the BP Ningbo LPG Bulk Breaking Terminal Project in China. 

In the domestic market, electric power companies and gas companies have not made large-scale investments in LNG terminals. However, we have secured orders for various reno- vation and/or revamp projects for LNG terminals in this fiscal year, thanks to our solid reputation for engineering expertise in the field of cryogenics. 

In the field of LPG stockpiling, we received orders for engineering and construction of Namikata and Kurashiki terminals in the first half of the fiscal year 2002. These projects are water sealed underground cavern storage terminals, and our experience with BP Ningbo Huadong LPG project should be useful and advantageous. 

We are also focused on winning the Kamisu LPG national stockpiling terminal project, which is scheduled to be tendered in the fiscal year 2003. 

In the new energy field, we have participated in developing a process for manufacturing synthe- sis gas at a gas-to-liquid (GTL) pilot plant for the Japan National Oil Corporation, which will pro- duce Japan’s first synthetic fuel. Verification of the commercial viability of Chiyoda’s catalyst for manufacturing synthetic gas will open up a promising future for this technology. 

