Note: The following press release is an English translation of the Japanese-language original

November 13, 2014
Company Name: Japan Petroleum Exploration Co., Ltd. (JAPEX)Securities Code : 1662 Tokyo Stock Exchange, First Section
President: Osamu Watanabe

Inquiries: Samdeck Nakamoto,General Manager, Media and Investor Relations Department

TEL+81-3-6268-7110:

Start of Construction of Soma LNG Terminal
Japan Petroleum Exploration Co., Ltd. (hereafter, “JAPEX”) today started theconstruction of an LNG terminal in Shinchi Town, Fukushima Prefecture (Soma Port).
JAPEX is also preparing to construct a connecting pipeline to convey vaporized LNG
gas from the terminal to its main trunk pipeline.
JAPEX is supplying natural gas produced domestically in Niigata, Yamagata andAkita prefectures, as well as vaporized LNG gas received from overseas, to users in theproduction areas and to those in other areas through its pipeline network, which
includes the Niigata-Sendai Pipeline and Shiroishi-Koriyama Pipeline. JAPEX is also
supplying LNG in liquid form to users through LNG satellite stations utilizing freightcontainers and tank trucks.
JAPEX regards it as its social mission to supply natural gas at a competitive pricestably over a long term to respond to an expected increase in natural gas demand inareas including the Tohoku region along the Pacific Ocean including Fukushima,
Miyagi and Iwate. Therefore, JAPEX will proceed with the construction of the Soma
LNG receiving terminal that will store and vaporize LNG to be offloaded from large
ocean-going LNG tankers docked at Soma Port, and the construction of the new 40km
pipeline to convey vaporized LNG gas from the terminal to JAPEX’s Niigata-SendaiPipeline (connecting at the Iwanuma Valve Station in Iwanuma City, Miyagi
Prefecture), which is considered JAPEX’s main artery. The completion of the newterminal and pipeline will represent the establishment of a robust energy network thatis superior in terms of the ability to ensure stable natural gas supply as well as security
in emergencies.
JAPEX has acquired a 10% interest in a natural gas development and production
project in British Columbia, Canada, and a 10% interest in the Canada Pacific
1/4NorthWest LNG Project, in which

natural gas is transported to the Port of Prince

Rupert on the western coast of Canada through pipeline and is liquefied and exported
as LNG, including the right to offtake 10% of the LNG. The project partners areworking toward beginning operation at the liquefaction plant by the end of 2018. Under
this project, JAPEX will offtake 10% (1.2 million tons) of the LNG at the plant (about 12million tons per annum) and use it as one of the LNG sources to be received at the Soma
LNG receiving terminal, which will be put into operation in March 2018. JAPEX willthus enhance its integrated operation of the natural gas supply business.
JAPEX will look to further strengthen its natural gas business as one of core profit
businesses by steadily promoting an integrated operation and supply system (“gasintegration”) that unfailingly supplies consumers with natural gas and LNG produced
from gas fields in Japan and abroad through pipelines and LNG import terminals.
【Chronology of past events and future schedule】
November 27, 2013: Final investment decision on construction of Soma LNG Terminaland Connecting Pipeline
November 13, 2014: Groundbreaking ceremony for Soma LNG terminal
2017: Scheduled completion of Soma LNG Terminal
2018: Scheduled start of operation of Soma LNG terminal【Overview of Soma LNG Terminal】
Name: Soma LNG Terminal
Construction site: Shinchi Town, Fukushima Prefecture (No. 4 port area in Soma Port)
Site area: approximately 20ha
Main facilities:

One above-ground LNG tank (230,000kl LNG: a future expansion ispossible), Large ocean-going LNG tankers receiving berth, LNG
domestic vessel shipping and receiving berth (a future expansion ispossible), two LNG vaporizers (a future expansion is possible), gas
heat capacity value control facilities for vaporized gas, LNG tanktruck loading facilities, other facilities

Investment amount: Approximately 60 billion yen (including the investment amountfor the connecting pipeline)
Applicable Law: Gas Business Act

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【Overview of Soma LNG Terminal】＜Natural gas pipeline network＞＜Image of Soma LNG terminal＞＜Planned construction area of Soma LNG terminal＞

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【Soma LNG terminal Groundbreaking ceremony】

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