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News Releases 2006
ITOCHU Corporation Enters the U.S. Natural Gas Business
November 15, 2006
ITOCHU Corporation has decided to embark upon business in sales of natural gas in the United States of America.
As a first step in this direction, we partnered with a gas sales firm headquartered in the state of Kansas to establish the joint venture Kansas Energy Co.LLC through our U.S. subsidiaries, took over the business rights of the gas sales firm, and commenced sales on 15 November 2006.Through our two U.S. subsidiaries, we acquired 80 percent of the shares issued by Kansas EnergyLLC.
In the United States, ITOCHU Corporation has had a wide-ranging trade in petroleum products, but this move represents its initial entry into the US market for natural gas, which is an enormous one, like that for oil.(In the United States, the yearly demand for natural gas comes to about 23 trillion cubic feet, making it about nine times as large as that in Japan.)
While the business rights taken over by Kansas Energy LLC center around the Midwest, we intend to expand the sales territory to include the U.S. East Coast, which constitutes an immense demand, and eventually the West Coast as well.
Further in the future, while keeping sales of natural gas at the core of our business, we have in mind an extension to areas such as investment in companies supplying natural gas to ordinary homes, participation in projects for development of gas wells in the United States, and supply of natural gas to independent power producers (IPPs).
Additional information: investment ratio in Kansas Energy LLC
ITOCHU International Inc.
ITC Natgas Holding Co.
Bullseye Energy, LLC