Eastern Star Gas appointed TOYO and Hitachi to undertake FEED on Mid-Scale Electric-Motor-Driven LNG Plant in Newcastle

Tokyo, Japan, February 7, 2011 - Toyo Engineering Corporation (TOYO) and Hitachi, Ltd., (NYSE: HIT / TSE: 6501) announced today that they have been appointed by Eastern Star Gas Limited (ESG) , an Australian gas and Coal Seam Gas (CSG)* development company, to undertake Front End Engineering and Design (FEED) for ESG’s LNG Newcastle (LNGN) Project upon the completion of feasibility studies, which have been conducted since May 2010. ESG plans to determine their investment by the first quarter of 2012 and start to export products in 2015.

FEED work will be completed by the fourth quarter of 2011 and will involve optimization, design, and detailed costing of the LNGN Project, including the LNG storage tank, jetty, and loading facilities. TOYO and Hitachi will be closely supported by Chart Energy& Chemicals, Inc., which will provide IPSMRTM process technology and core equipment for the gas liquefaction process.

The electric-motor-driven, mid-scale, single mixed refrigerant technology offers multiple advantages, especially for LNG projects fed by CSG, including 1) low capital cost and quick construction, 2) high reliability, high efficiency, and low environmental impact, 3) operational flexibility and train size ideally suited for CSG development, 4) a small footprint and low noise ideal for the site location.
The LNGN Project is expected to use electric-motor-driven mid-scale LNG technology with a capacity of one (1) Million Metric Ton Per Annum (MMTPA) at the 24 hectare parcel of land on Kooragang Island, Newcastle port. It is anticipated that the site will be capable of accommodating a capacity of up to 4 MMTPA in the future. Hitachi’s cutting edge electoric-motor-driven technology, which has been cultivated in its railcar and steel plant business will contribute to the excellent performance of LNGN.

This is the first case in which TOYO and Hitachi are cooperating together to FEED　for a Mid-Scale LNG plant. Therefore, it is an important milestone for both companies as one strategy to expand business domains in the future. TOYO and Hitachi will further expand business in global market, where small- and medium-scale gas fields are utilized effectively.

Note * Called coal seam gas in Australia, this gas is generally referred to as Coalbed Methane (CBM) and is extracted from coal seams and their surrounding areas.