October 4, 2006
- Joint GTL demonstration test project begun for the stable supply of energy -Establishing the Nippon GTL Technology Research Association

INPEX Holdings Inc. is pleased to announce that INPEX CORPORATION has decided toestablish Nippon GTL Technology Research Association, together with Nippon Oil
Corporation, Japan Petroleum Exploration Co., Ltd., COSMO OIL Co., Ltd., NIPPON STEELENGINEERING Co., Ltd, and CHIYODA Corporation and Nippon GTL Technology Research
Association will begin demonstration test project on technology to convert natural gas toliquid fuel (hereinafter, GTL technology) in coordination with the Japan Oil, Gas and Metals
National Corporation (hereinafter, JOGMEC).
In recent years the expanding global energy demand, especially from Asia, has made thestable supply of energy an important and urgent matter. In facing this issue, the GTL
technology with which the natural gas present throughout the world can be converted intoliquid fuel is an extremely effective technology for achieving the diversification of primaryenergy supplies. The fuel produced using GTL technology is also expected to be anenvironmentally friendly clean fuel.
The process being developed in this GTL demonstration test project is a groundbreaking
technology that would for the first time ever allow for natural gas containing carbon dioxide
gas to be used directly. Through this research we will develop the technology to competewith the leading oil companies as we work toward harmonizing future stable energy supply
with the preservation of the global environment.
Notes
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Overview of the Nippon GTL Technology Research Association(1) President

Tadashi Sagai (Executive Vice President Japan Petroleum
Exploration Co., Ltd.)(2) Location

Head Office: Nippon Oil Toranomon Building, 1-2-6 Toranomon,Minato-ku, Tokyo
Testing Center: Niigata Higashiko Industrial District(3) Date of Founding

Late October, 2006 (planned)

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Overview of GTL Technology

GTL is short for Gas-To-Liquids. The technology allows for production of petroleum products
such as naphtha, kerosene, and diesel oils from natural gas through chemical reactions.
Overseas it is being advanced by Sasol in South Africa and in commercial projects being
carried out by major western oil companies (Shell, ExxonMobil, ConocoPhillips, and others).

GTL
Natural gas(methane,carbondioxide)3.

FTsynthesis*Syngas
manufacture
Syngas(hydrogen,carbonmonoxide)

Hydrocracking
Liquid fuelsyncrudeNaphthaKerosene
Diesel, andLubricant baseoils* FT synthesis: Fischer-Tropsch synthesis

Overview of the GTL Demonstration Test Project(1) Goal
We will test GTL technology in a 500 B/D demonstration plant in preparation for commercial
scale plant and explore further scaling up toward commercial capacity of several tens ofthousands of B/D, developing GTL technology that is technologically and economicallycompetitive.
(2) Research Structure
Joint research with JOGMEC and Nippon GTL Technology Research Association newly
established by six private firms(3) Research Budget
Total project cost: approx. 36 billion yen (of which approx. 12 billion yen will be borne by thesix private firms)<Cost burden for the six private firms>
INPEX CORPORATION

Approx. 3 billion yen

Nippon Oil Corporation

Approx. 3 billion yen

Japan Petroleum Exploration Co., Ltd.

Approx. 3 billion yen

Cosmo Oil Co., Ltd.

Approx. 1 billion yen

Nippon Steel Engineering Co., Ltd.

Approx. 1 billion yen

Chiyoda Corporation

Approx. 1 billion yen(4) Time Period

FY 2006-2010 (five years)

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