Itochu and Mitsui O.S.K. Lines Establish Joint Venture LNG Transportation Company with Algerian Partners and Construct New Building Medmax LNG Carrier at Universal Shipbuilding Corp.
Tokyo, Japan - Jul 1, 2004 (PRN):
Sonatrach (Algerian State Owned Hydrocarbon Company), Hyproc (Shipping Company wholly owned by Sonatrach), ITOCHU and MOL have agreed to establish the joint venture company (shareholding ratio 25% each) to construct newbuilding 75,500 cbm LNG Carrier and charter that Vessel to Sonatrach on long term.
Four (4) joint venture partners jointly carried out the international tender to select the shipyard and as a result of such tender, gave an award to Universal Shipbuilding Corp for one firm (1) plus one (1) option 75,500 cbm LNG carriers (delivery in 2007 and 2009).
This Vessel is called as Mediterranean Max, which has been designed and optimized to trade in Mediterranean Sea and have the largest cargo loading capacity in this type of Vessel.
Algeria started LNG export in 1961 as pioneer and since then, now becomes the world's second largest exporter of LNG in the world (abt. 20 million ton per year in 2002). Sonatrach plan to use these vessels for LNG trade to European countries, mainly in Mediterranean trade and reinforce its ability to transport and sell LNG from Algeria further. After delivery from the shipyard, these vessels will be operated under the joint collaboration between Hyproc and MOL.
ITOCHU is proud of business record with Sonatrach for more than 30 years since 1969 by making an integrated approach from upstream to downstream and very eager to expand LNG transportation business. MOL is actively involved in LNG transportation project all over the world and a leading shipping company in this area.
ITOCHU and MOL established similar joint venture company with Sonatrach and Hyproc in 2002 and one (1) 145,000 cbm LNG Carrier is now under construction at Kawasaki Shipbuilding Corporation. The Vessel is scheduled to be delivered in October, 2004 and chartered to Sonatrach on long term after delivery from the shipyard.
ITOCHU and MOL have been consecutively involved in LNG transportation project for Algeria, 2nd largest LNG exporter, and enhance close relationship with Sonatrach and Hyproc further.
ITOCHU and MOL are very keen to contribute for further development of energy sales and transportation for Algeria.
About Mitsui O.S.K Lines Limited
Mitsui O.S.K. Lines, Ltd. (TSE: 9104) was founded in 1964 by a merger that joined Mitsui Steamship Company with OSK Line and as such can claim a pedigree stretching back more than a century to the origins of Japanese shipping. It is an operator of shipping with a fleet including containerships, tankers and specialised carriers for a range of products and commodities; real estate and resort development; airship leasing, consulting, computer services and cruise ship operation. Overseas transportation accounted for 80% of fis 2001 revenues; warehousing, 6%; port-harbor transportation., 5%; ferry operations, 4% and other, 5%. For further information, please visit the Mitsui O.S.K Lines Limited home page at: http://www.mol.co.jp/menu-e.shtml
About Itochu Corporation
Itochu (TSE: 8001) (formerly C. Itoh and Co., Ltd.) is one of Japan's leading trading companies with offices in over 80 countries and operations that cover a broad spectrum of industries. It is ranked 17th among the top 500 companies in the world. The company's "Super A&P 2004" mid-term business plan focuses its China strategy on "consumer-related" investment activities. Prior to the current transaction, Itochu has already entered a comprehensive co-operation agreement with Tingyi's parent company, Tinghsin Group, in China's retail and restaurant sectors. Itochu is listed on Tokyo Stock Exchange with a current market capitalization of approximately US$5.2 billion. For further information, please visit the Itochu Corporation home page at: http://www.itochu.co.jp/main/index_e.html
