Compania de Generacion Valladolid (CGV), 50% owned by Mitsui & Co., Ltd. (hereafter Mitsui) and Chubu Electric Power Co., Inc. (hereafter Chubu Electric) respectively, has been constructing a natural gas combined cycle power plant with a capacity of 525MW, in the Mexican city of Valladolid on the Yucatán Peninsula, which has now begun commercial operation as planned on 27th June.

The IPP project generates power using natural gas supplied by Comisión Federal de Electricidad (CFE), and sells it on the basis of a 25-year power purchase agreement with the CFE.

In April this year, Mitsui and Chubu Electric acquired the entire stake (45%) held by Calpine Corporation (US) in CGV, which had until then been a partner jointly implementing this project. After the acquisition, Mitsui and Chubu Electric had aimed to achieve commercial operation as a 50/50 joint venture project.

The construction of this power plant facility was undertaken by Mitsui and Toshiba Corporation on the basis of engineering, procurement and construction agreements with CGV.

Mitsui would like to continue to be proactively involved in overseas power operations in the future, with a view to expanding our superior business foundation in the infrastructure field, as declared in our Medium-Term Management Outlook.

Note:
This material contains comments pertaining to the future. These comments contain risk and uncertainty, so attention must be given to the possibility that events such as changes in the business environment could cause these comments to differ from reality. This material is not meant to be used as investment advice of any kind, or for any investment-related activity.