Japan is the world's largest single market for LNG, importing over 60mt in 2006. In 2007, projects with Shell involvement will provide around 36% of all LNG imported into Japan. Japan therefore is a key market for Shell, and the rapidly growing LNG business offers many challenges where commerciality, optionality, and customer focus are the key drivers. Shell Gas & Power Japan Ltd.'s LNG Division offers assistance in communications between LNG buyers and other stakeholders both in and outside Japan. We also provide periodic market advice to Shell's global business with regard to developments in Japan's energy industry and governmental policy. The promotion of natural gas as a clean and efficient fuel is also one of our principle business priorities in Japan.

Alternative fuels such as GTL fuel and biofuels have been singled out by the Japanese government as a replacement for transportation fuels in Japan. Based on the marketing policy of the GTL team in London, the New Energy Business Division of Shell Gas & Power Japan Ltd. has facilitated engagements between Shell and local and central governments with aim of introducing GTL fuel into the Japanese market.
Working closely with our partners in Showa Shell Sekiyu K.K. (who are responsible for the technical development and field tests of GTL), we hope that the introduction of GTL in Japan will contribute to improving the diversity of supply of transport fuels and reducing Japan's dependence on petroleum products.

The Shell Coal Gasification Process uses successfully implemented and commercial technology to produce synthesis gas from lignite to anthracite and petroleum coke. Units are licensed for power generation and the production of chemicals. This technology has been recently licensed to more than 15 customers globally, illustrating the benefits of the process both economically and environmentally. In Japan, we are marketing this technology to Japanese companies for its utilization in and outside Japan.