LNG Terminal Delivered to Sakaide LNG

Mar. 25, 2010

LNG Terminal Delivered to Sakaide LNG

Tokyo, March 25, 2010 — Kawasaki Heavy Industries, Ltd. announced today that it has completed and delivered an LNG storage and re-gasification terminal to Sakaide LNG Co., Inc. The order for this first large-scale LNG terminal in the Shikoku region was placed in February 2006. This is the first time Kawasaki has supplied an entire LNG terminal, including an LNG tank and re-gasification facilities, on a full turnkey basis. As the sole prime contractor, Kawasaki is responsible for everything from engineering, to procurement, construction and subcontracting.

The LNG terminal has a prestressed concrete (PC) LNG storage tank with a capacity of 180,000 m3, making it one of the largest aboveground full containment LNG tanks in Japan. Kawasaki completed the entire LNG terminal project, from the beginning of construction to the arrival of the first LNG shipment, in just three years. After the successful completion of performance testing, Kawasaki was able to deliver the LNG terminal to Sakaide LNG today. Sakaide LNG immediately commenced commercial operations upon delivery and is now supplying natural gas to Shikoku Electric Power’s Sakaide Power Plant. In addition to supplying natural gas to the Sakaide Power Plant’s No. 4 unit, which was recently converted to a natural gas-fired thermal power generation system, the LNG terminal will start supplying natural gas to the power plant’s No. 1 gas turbine power generation unit in August 2010.

Rising demand for LNG, an environmentally friendly, clean energy source that minimizes our carbon footprint, is fueling the construction of terminals around the world. Kawasaki delivered its first underground LNG tank in 1982 followed by an aboveground tank in 1983. Since then Kawasaki has furnished the Japanese market with every type of LNG tank available, including single/double/full containment tanks, in-pit tanks, as well as in-ground and underground membrane tanks. To date, Kawasaki has supplied 27 LNG tanks worldwide. Kawasaki will leverage its proven track record and full turnkey LNG terminal construction capability to expand its LNG terminal business around the globe.

Overview of New LNG Terminal:
1. Client: Sakaide LNG Co., Inc. [a joint venture among Shikoku Electric Power Co., Inc. (70%), Cosmo Oil Co., Ltd. (20%) and Shikoku Gas Co., Ltd. (10%)]
2. Contract: Civil, mechanical, electrical engineering, procurement and construction (full turnkey) for:
- LNG loading/unloading and re-gasification facility
- Full containment LNG tank (capacity: 180,000 KL)
- LNG send-out facility
- LNG tank truck loading facility