MHI to Establish LNG Project Management Department

Department Will Integrate LNG Facility Engineering Activities and Explore a Broad Range of Market Needs

Tokyo May 28, 2013

Effective June 1, Mitsubishi Heavy Industries, Ltd. (MHI) will establish LNG Project Management Department, within the Environmental & Chemical Plant Project Management Division of the Company's Engineering Headquarters. The new department will be dedicated to market exploration of LNG (liquefied natural gas) related business opportunities. By establishing the new unit, MHI aims to expeditiously respond to the growing demand for LNG related facilities that is being fueled by rapid expansion of shale gas production in the U.S. The department will also explore business opportunities in the LNG supply chain* by integrally and cross-divisionally overseeing the company's LNG related engineering activities.

The LNG Project Management Department will develop basic business plans and technology strategies for various projects related to LNG facilities, and, in the future, will establish a structure capable for offering full-service EPC (engineering, procurement and construction) solutions for LNG terminal construction.

MHI has a proven track record of success in delivering LNG related facilities and products, including LNG receiving terminals, storage tanks, and LNG carriers. Facility and product requirements in this field have diversified in recent years to include offshore floating LNG production, storage and offloading facilities (F-LNG), and small- and medium-size plants. To respond to these diversified demands, MHI made the decision to expand its LNG project staffing and to establish a dedicated unit to enable cross-divisional coordination within the company.

Amid growing global demand for energy, the relatively lower carbon emissions offered by natural gas are making it an increasingly attractive energy resource. In addition, the economically advantageous development of shale gas in the U.S. and other countries is leading many operators around the world to revamp existing LNG facilities, and/or to plan the construction of new ones.

With the establishment of its dedicated LNG Project Management Department, MHI will seek to develop these LNG facility and product business opportunities in new and existing areas.

* Includes LNG field development, LNG liquefaction plants, LNG carriers, and LNG receiving terminals.

Mitsubishi Heavy Industries, Ltd. press release