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promoting the projects, Mitsui and Mitsubishi are also
Feb 20, 2006
TOKYO, Feb 20 Asia Pulse – Japanese firms Mitsui & Co. (TSE:8031) and Mitsubishi Corp. (TSE:8058) have launched a joint feasibility study on natural gas-based projects, such as petrochemical production and power generation, on the Russian island of Sakhalin, it has been learned.
Currently on the drawing board are plans to build a factory to produce ammonia and methanol from natural gas pumped off the island. The local government has already presented the companies three possible factory sites.
The parties involved also envision a project to use natural gas instead of coal as the island's major fuel for generating power.
Late last year, the companies sent a group of delegates to Sakhalin for an initial survey. The local government asked them to present a report on the feasibility study by the end of this year.
These projects are part of industrial promotion measures agreed upon last year between the two firms and the Sakhalin government.
Seeking to help ensure that the huge “Sakhalin 2” plan to export liquefied natural gas to Japan and South Korea, which also involves Royal Dutch/Shell Group, goes smoothly.

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