Skip to main content


Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.

May 24, 2010

Hitachi, Toyo Engineering and Eastern Star Gas Agree to Conduct
Feasibility Study on Electric-Motor-Driven Mid-Scale LNG Plant

Tokyo, Japan, May 24, 2010 - Hitachi, Ltd. (NYSE:HIT/TSE:6501, “Hitachi”) and Toyo Engineering Corporation (TOYO) today announced that they have signed an agreement with Eastern Star Gas Limited (ESG), an Australian gas and coal seam gas (CSG)*1 development company, to conduct a feasibility study for an electric-motor-driven Mid-Scale LNG plant in Newcastle in the state of New South Wales, Australia. ESG has plans to export LNG starting in 2014, and this study will investigate the economic feasibility of an electric-motor-driven Mid-Scale LNG plant.

At present, multiple CSG drilling projects are being conducted in Australia. ESG owns the largest CSG block in New South Wales, and has plans in hand to begin exporting LNG in 2014. ESG will begin by exporting 1 million tons of LNG to Japan and other countries in the first year of operations, eventually raising exports to over 4 million tons a year.

The electric-motor-driven Mid-Scale LNG plant to be studied was proposed jointly by Hitachi, leveraging its strengths in electric-motor-driven technology accumulated in rolling stock, steel plants and other areas, and TOYO, drawing on its strengths in project management and system integration gained in the plant engineering field, based on the LNG liquefaction technology supplied by Chart Energy & Chemicals, Inc. Compared to large base-load plants, this type of plant is progressively scalable, and the project period from initial consideration to completion of construction can be roughly halved. Coupled with the fact that they cost less to construct, these LNG plants are ideally suited for small- to medium-sized gas fields. This joint Hitachi/TOYO feasibility study will look at the economic feasibility of the LNG plant and technology related to all-electric systems.

In addition to this project, Hitachi and TOYO expect demand for small- and medium-scale LNG plants from other projects in the Asia-Pacific region, such as stranded gas fields*2. The two companies therefore plan to jointly develop business in this area going forward.

Called coal seam gas (CSG) in Australia, this gas is generally referred to as coalbed methane (CBM) and is extracted from coal seams and their surrounds.
Stranded gas fields refers to small and medium-sized gas fields that are not being developed for economic or geographical reasons.

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at

About Toyo Engineering Corporation

Toyo Engineering Corporation (Toyo) employs around 7,000 people worldwide. Established in1961, the company provides concept planning, engineering, procurement and construction services in areas including general chemicals, petrochemicals, petroleum refining, petroleum and natural gas, power generation, nuclear power, advanced production systems, distribution networks, pharmaceutical, biotechnology and environmental business. Toyo was EPC contractor for construction of the 9.6 million tonne per annum Sakhalin II LNG project in Russia, completed in 2008.

Download Adobe Reader
PDF files are in Adobe's Portable Document Format. To view them you need Adobe® Reader® by Adobe Systems Incorporated.