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Aug 1, 2006

Chiyoda Corporation (TSE: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.