November 15, 2004

ITOCHU, MOL, and Algerian Partners
to Build 2nd Medmax LNG Carrier

A newly established joint venture among Mitsui O.S.K. Lines, Ltd. (MOL; President: Akimitsu Ashida), ITOCHU Corporation (ITOCHU; President & CEO: Eizo Kobayashi), Algerian state oil company Sonatrach (Sonatrach; President Director General: Mohamed Meziane),and its wholly owned shipping company Hyproc Shipping Company (Hyproc; President Director General: Mustapha Zenasni) has exercised its option to order a second liquefied natural gas (LNG) carrier from Universal Shipbuilding Corporation. Each of the partners holds a 25% share in the joint venture. The 75,500 cbm ship, slated for delivery in 2009, will sail under a long-term charter contract with Sonatrach.

In May 2004, the four partners carried out an international tender to select a shipyard and awarded a contract to Universal Shipbuilding for one LNG carrier, with an option on a second.

Algeria pioneered LNG exports in 1961 and is now the world's second largest LNG exporter, with shipments of about 20 million tons in 2002. Sonatrach plans to use these vessels to serve European countries, mainly in the Mediterranean trade, to enhance its sales capabilities. The ships are called “Medmax” carriers because they are the largest vessels that can serve ports in the Mediterranean. MOL and Hyproc will jointly operate the new ships.

ITOCHU and MOL established a similar joint venture with Sonatrach and Hyproc in 2002 to build a 145,000 cbm LNG carrier at Kawasaki Shipbuilding Corporation. That ship was delivered in October 2004 and is now operated by Hyproc and MOL under a long-term charter with Sonatrach. MOL dispatch experts in LNG carrier operation to Hyproc. With the new order, the partnership will own and operate three LNG carriers.

ITOCHU and MOL have played a key role in Algeria's LNG transportation projects, and look forward to further development in the future.