Mitsui, Tokyo Gas Announce Signing of Project Finance Agreement for the Natural-Gas-Fired Power Stations in Mexico

Mitsui & Co., Ltd. (“Mitsui”) and Tokyo Gas Co., Ltd. (“TGC”) announced today that MT Falcon Holdings Company S.A.P.I. de C.V. (Mitsui: 70%, TGC: 30%) (“Falcon”) has signed a USD 750 million (approximately JPY 68 billion) project financing agreement on September 29 (US Eastern Daylight Time) with Japan Bank for International Cooperation and three commercial banks to finance the acquisition of five gas-fired combined cycle power stations in Mexico (“Power Companies”) and relevant companies including a pipeline company (together, the “Companies”).

On December 2009, Mitsui and TGC executed agreements with Gas Natural SDG S.A. to acquire the total ownership interest in the Companies (approximately USD1.2 billion, JPY 110 billion), and they completed the acquisition in June 2010.

The Power Companies hold five gas-fired combined cycle power stations located in the north east region of Mexico, which have started its commercial operation since 2001 to 2005, with an aggregate total generating capacity of 2,233MW.

The full generating capacity of the Power Companies is contracted to the Mexican national power authority, Comisión Federal de Electricidad under long-term (25 years) power purchase agreements.

The investment in the power generation projects is one of the primary focuses of Mitsui’s infrastructure business, and the company will continue to develop its investment portfolio in such business field.

With the global increase in power demand, Mitsui will further promote its global power business by developing new projects of this kind and achieving the stable operation and management of its portfolio.

This is the second overseas power asset investment for TGC after the existing Mexican power business (Bajio Project).

TGC plans to continue developing its overseas business related to the LNG value chain, including by acquiring interests in upstream projects.

[mappress]

Source: Mitsui, September 30, 2010