| November 15, 2004 |
| MOL, "K" LINE and PRISCO Conclude Long-Term Charter
Contract for Newly-Built 147,000m3 Type LNG Carrier to Serve Sakhalin Energy Company |
| Mitsui O.S.K. Lines, Ltd.("MOL"), Kawasaki Kisen Kaisha, Ltd. ("K" LINE), and Primorsk Shipping Corporation (PRISCO; Headquarters: Nakhodka, Russia) concluded a 20-year charter contract for a newly built LNG carrier with Sakhalin Energy Investment Company Ltd.(Sakhalin Energy; Joint venture of Shell with a 55% share, Mitsui & Co., Ltd. 25%, and Mitsubishi Corporation 20%) in London on November 15, 2004. |
| At the same time, MOL, "K" LINE, and PRISCO concluded an agreement to build a new LNG carrier. The LNG carrier, planned to complete construction in April 2008, will be launched for the Sakhalin II project (the first LNG plant in Russia, with expected annual LNG production volume at 9.6 million tons after completion). During winter ice floes may drift down to Prigorodnoye Port, the planned loading port, so the LNG carrier will adopt the specifications of ice bound sea and cold regions that allow normal navigation of ice floes up to 55cm thick. |
| MOL and "K" LINE offer LNG carrier operation know-how in training Russian seafarers. On the other hand, PRISCO offers know-how to MOL and "K" LINE of navigation through ice bound seas. MOL and "K" LINE are aggressively working on to this project in order to contribute to the development of the LNG business in Sakhalin, Russia, through the safe operation of this LNG carrier. |
| MOL will take responsibility for the management of the LNG carrier. |
| Ref.) New LNG Carrier Specifications |
| Shipbuilding Company: Mitsui Engineering & Shipbuilding Co., Ltd. (Chiba Works) |
| Delivery: April 2008 |
| LNG Tank Capacity: 147,000m3 |
| Tank System: Moss type |
| Length/Breadth: 289.5m/49.0m |
| Full Load Draft in Summer: 11.3m |
| Gross Tonnage: 123,000 tons |
| Speed: 19.5 knots |
| Others: Specifications for ice bound seas, cold regions |
| For further information, please contact: Tomoyuki Okawa Deputy General Manager LNG Group Kawasaki Kisen Kaisha, Ltd. Tel: 81-3-3595-5500 / Fax: 81-3-3595-5512 |
| Alexander Migunov Managing Director Prisco (Singapore) Pte Ltd. Tel: 65-6333-6814 / Fax: 65-6334-4360 |
| Takeshi Hashimoto General Manager LNG Carrier Group (A), LNG Carrier Division Mitsui O.S.K. Lines, Ltd. Tel: 81-3-3587-7549 / Fax: 81-3-3587-7737 |