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No. 357, June 1999

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American Companies in Japan


ENERGY RESOURCES

EXXON JAPAN PIPELINE LTD. will evaluate the feasibility of building a pipeline to deliver natural gas from the northern end of Russia's Sakhalin Island to Japan in partnership with a newly formed Japanese company. JAPAN SAKHALIN PIPELINE FS CO., LTD. is owned by JAPAN PETROLEUM EXPLORATION CO., LTD. (45 percent), ITOCHU CORP. (33 percent) and MARUBENI CORP. (22 percent). It will have a 75 percent interest in the consortium to be set up with the EXXON CORP. subsidiary and will put up the same share of the three-year project's estimated $32.8 million cost. The initial pipeline route studied would run 800 miles down the length of Sakhalin Island and then under the Sea of Japan to Niigata prefecture. The alternative is a Pacific Ocean route. The feasibility study not only will examine these options but also design standards and environmental and regulatory considerations. Exxon and Japan's SAKHALIN OIL DEVELOPMENT CO., LTD., a public-private partnership, each have a 30 percent stake in the offshore Sakhalin I project, the source of the potential natural gas supply.

All 10 nuclear electric utilities in Japan now have new long-term purchase contracts with USEC INC., the world's leading supplier of uranium fuel enrichment services for commercial nuclear power plants. The last two regional utilities to arrange for nuclear fuel enrichment services for most of the coming decade were TOKYO ELECTRIC POWER CO., INC., Japan's biggest electric power company, and TOHOKU ELECTRIC POWER CO., INC. Bethesda, Maryland- headquartered USEC and its UNITED STATES ENRICHMENT CORP. operate nuclear fuel enrichment plants in Kentucky and Ohio that previously were owned by the U.S. government.

An exchange rate of ¥122=$1.00 was used in this report.aaaaaa

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