Chiyoda: Award of Letter of Intent for Feed Gas Preparation Works of World's Largest Gas to Liquids (GTL) Project in Qatar

Chiyoda Corporation (TOKYO:6366)(ISIN:JP3528600004) has
signed a Letter of Intent with Qatar Shell GTL Limited, a Royal Dutch
Shell plc subsidiary, for the engineering, procurement and
construction (EPC) for the Feed Gas Preparation Works of the Pearl GTL
Project. This Project for two trains of gas processing units, with a
capacity of 800 MSCFD and a total of 1,600 MSCFD of natural gas
(equivalent to 8 MMTPA of LNG), will send feed gas to the GTL core
unit to produce 140,000 barrels per day of GTL products. The project
will be completed around the end of the decade in a staged sequence
for phase 1 and 2. The work will be executed by a consortium of
Chiyoda Corporation, as the leader, and Hyundai Heavy Industries
(CHC).
The award of the Project is proof of the client's recognition of
Chiyoda's reliability on quality plants. The most important
contributing factor for high plant reliability is the implementation
of Chiyoda's Reliability Program. The Reliability Program is an
internal management system consisting of Lessons Learned, Cold Eye
Review, Intensive Design Review/Engineering Criticality Study and
Flawless Start-up Program. By implementing these measures from the
engineering phase to the start-up/commissioning phase, clients can
enjoy the maximum benefit from a reliable plant that wastes no time in
initiating production. In addition to Chiyoda's high technical
capability to build the world's largest plants, Chiyoda's profound
knowledge of the Ras Laffan Industrial Area was recognized by the
client.
The GTL plant will produce virtually sulphur-free, clean liquid
products and fuels that will contribute to cleaner air quality for
cities around the world. Accordingly, various GTL projects are being
planned worldwide and Chiyoda, by participating in this GTL project,
has created a major milestone for future GTL projects.

Chiyoda Corporation, headquartered in Yokohama, Japan, provides
services in the field of engineering, procurement and construction for
gas processing, refineries and other hydrocarbon and industrial plant
projects, particularly in Gas Value Chain areas, on a global basis
including the Middle East, Russia, Africa and South East Asian
regions. For more than 50 years, Chiyoda has constantly leveraged its
extensive experience and a far-reaching global network to give it an
unrivaled advantage. The company will continue its EPC business, while
innovating an expanded business model that includes its Reliability
Program and plant lifecycle engineering (PLE). This will enable
Chiyoda to become a one-stop provider of everything its customers need
in the way of plant development and operations.