＂K＂ Line and Statoil Reach Accord on Long-Term Charter

Kawasaki Kisen Kaisha, Ltd. ("K" Line), in cooperation with Mitsui & Co., Ltd., reached an agreement with Statoil ASA (Statoil) for the Long-Term Time Charter of two 140,000M3-type (Moss-Rosenberg tank type) liquefied natural gas (LNG) carriers on December 19, 2001. This Charter is expected to become effective after receiving the Norwegian Parliament's approval of the Snøhvit LNG project in February 2002.

"K" Line also reached Shipbuilding Contracts for these two LNG carriers with Mitsui Engineering & Shipbuilding Co., Ltd. and Kawasaki Heavy Industries, Ltd., respectively.

Statoil, together with other first-class energy companies, is promoting Snøhvit LNG Project involving development of three gas fields and a liquefaction plant to produce LNG (about 4.2 million tons per year) to be exported mainly to the U.S.A. and Spain. The aforementioned LNG carriers will be employed for LNG transportation for 20-30 years. Statoil will also participate in the ownership of the LNG carriers.

"K" Line is proud to have been awarded the Charter by Statoil being highly evaluated for its excellent track record in safety of LNG transportation and technical know-how accumulated since 1983 as Japan's first owner/operator of an LNG carrier.

In keeping with the company's emphasis on globalization and business diversification, "K" Line is committed to expand its worldwide LNG transportation services on top of its established services destined for Japan in response to ever-increasing needs for LNG transportation worldwide.