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Marine Log

177,000 cu.m. LNG TANKER

November 12, 2007

Tokyo Gas orders 177,000 cu.m Moss type LNG tanker

Tokyo LNG Tanker Co., Ltd., a wholly-owned subsidiary of Tokyo Gas, has signed a shipbuilding contract with Kawasaki Shipbuilding Corporation for a newly designed 177,000 cu.m tank capacity Liquefied Natural Gas (LNG) carrier. Tokyo LNG Tanker also signed heads of agreement with Nippon Yusen Kaisha (NYK Line; for joint ownership (Tokyo LNG Tanker: 10%, NYK Line: 90%), and a time charter for 20-year term of the carrier.

This will be the eighth LNG carrier in Tokyo LNG Tanker's fleet. Like the existing LNG carriers of Tokyo LNG Tanker, the new carrier is expected to call LNG terminals worldwide. It offers the maximum tank capacity compatible with major terminals in the Asia-Pacific region ("Pacific Max"), offering 14 percent more capacity than the 155,000 cu.m design.

With four spherical LNG tanks, the Moss-type carrier is equipped with Kawasaki Advanced Reheat Turbine Plant for propulsion, the world's first LNG carrier application of the system which gives a 15 percent higher fuel efficiency.

After its completion in 2011, together with existing LNG carriers, the ship will transport LNG cargos from Northwest Shelf Expansion Project, Malaysia I and III Project, Darwin Project, Sakhalin II Project, Pluto Project,Gorgon Project and other projects.

NYK Line is appointed to be the ship manager under the 20 year-term time charter.

By managing eight LNG carriers, Tokyo Gas Group intends to procure LNG not only through long term contracts, but also through short term, spot contracts and other innovative methods. This will contribute to lower LNG fleet costs for Tokyo Gas while increasing its LNG procurement flexibility.

Tokyo LNG Tanker is also considering expanding its LNG transportation business, and chartering-in/ chartering-out of LNG ships.