Note: The following press release is an English translation of the Japanese-language originalDecember 4, 2017
Company Name:
Representative:
Security Code:Inquiries:
Tel.:Japan Petroleum Exploration Co., Ltd. (JAPEX)
Hideichi Okada, President
1662 (First Section of Tokyo Stock Exchange)
Media and Investor Relations Dept.
+81-3-6268-7110

Start of Commissioning on the Soma LNG Terminal
Japan Petroleum Exploration Co., Ltd. (JAPEX) announced that the Soma LNG Terminal located at theNo.4 wharf of Soma Port, Shinchi Town, Fukushima prefecture has started commissioning on December 1,
2017 aiming commencement of commercial operation in March 2018 following the mechanical completion of
the facilities in the terminal (hereinafter “the Facilities”) on November 30, 2017, in which the final
investment decision was made in November 2013(*1) and started its construction in November 2014(*2).
The Soma LNG Terminal is a large-scale LNG terminal composed of a ground-type LNG storage tank witha capacity of 230,000 kiloliters which is one of the largest in Japan, two berths for large ocean-going ship ofreceiving and domestic vessel of receiving and shipping, LNG vaporization equipment, and LNG shippingfacility. This terminal will receive LNG from overseas and will supply LNG vaporized gas to theNiigata-Sendai Gas Pipeline (from Seiro Town, Niigata prefecture to Sendai City, Miyagi prefecture) via the
Soma-Iwanuma Gas Pipeline (hereinafter “the Soma-Iwanuma Line”) which commenced operation on
November 1, 2017(*3). Furthermore, this terminal will supply LNG as a liquid based on LNG satellite
system using tank trucks and domestic vessel. The terminal will enable us to enhance our natural gas
supply in point of security along our pipeline network connecting between the Japan Sea side and the Pacific
Ocean side, and in point of amount along our pipeline network and in regions surrounding the terminal after
commencement of commercial operation.
During commissioning period, test operations for commercial operation commencement is being conductedwith linkage between the Facilities, the Soma-Iwanuma Line, and tank trucks and domestic vessels for LNG
satellite supply. And the legal procedures and preparation works for commercial operation have beenproceeding. Also the first LNG ship will arrive to the Soma Port on December 6, 2017 and will provide thefirst receiving LNG to the terminal(*4).
In addition, JAPEX has been entrusted from Fukushima Gas Power Co., Ltd. (FGP), which is funded byprivate companies including us, with the management and operation of the second phase to construct theadditional LNG storage tank with a capacity of 230,000 kiloliters (hereinafter "No.2 tank" and additionalvaporization equipment in the terminal that made the final investment decision by FGP in October, 2016(*5). Construction works of No.2 tank was commenced in April 2017, and additional LNG vaporizationequipment will commence construction in spring 2018. The facilities constructing in the second phase areplanned to commence commercial operation in spring 2020 at the same time of commercial operationcommencement of Fukushima Natural Gas Power Plant which commenced construction by FGP in October
2017 at the adjacent to the terminal.
Please refer to the appendix for the outline of the Soma LNG Terminal.
1/4

The Soma LNG Terminal has certified as one of the Reconstruction Promotion Plan based on the Act on
Special Zones for Reconstruction in Response to the Great East Japan Earthquake, and has been supportedfor the development of the port area applied the Harbor System for the energy sector by the Japanese
government and Fukushima prefecture. Furthermore, the terminal has been regarded as one of the main
project of "the Fukushima Innovation Coast Framework", promoted by the government and Fukushima
prefecture for developing new regional economics and clusters of industries and activating local community
in the coastal region of Fukushima.
Through the enhancement of our natural gas supply network starting from the Soma LNG Terminal andparticipation in the natural gas power generation project at the Soma Port conducted by FGP, JAPEX isaiming to contribute for the revitalization of the surrounding region of the terminal. And we are pursuingfor the transformation to "an Integrated Energy Company with a Focus on the Oil and Natural Gas E&P" bybusiness expansion to the related fields of natural gas as well as strengthen our natural gas supply businessas the base of our revenue .
The effect of this matter to the consolidated financial forecasts for the fiscal year ending March 31, 2018 is
negligible and the effect to the consolidated financial forecasts of the following fiscal years will be disclosed
properly if necessary.
(Notice)*1: Refer to "Final Investment Decision on Construction Project of Soma LNG Receiving Terminal and aConnecting Pipeline" released on November 27, 2013.
*2: Refer to " Start of Construction of Soma LNG Terminal" released on November 13, 2014.
*3: Refer to "Commencement of Operation on the Soma-Iwanuma Gas Pipeline" released on November 1,2017.
*4: The arrival date will change due to weather condition and others.
*5: Refer to "Decision on Commercialization of Natural Gas-Fired Power Generation Project at Soma Port inFukushima Prefecture and Participation of New Business Partners in the Project" released on October 11,2016.
###(Appendix)
1. Outline of the Soma LNG Terminal
2. History and Schedule of the Soma LNG Terminal and Related Matters

2/4

(Appendix)
1. Outline of the Soma LNG Terminal
Name
Site
Applicable Law
Site Area
Receiving Facilities

Soma LNG Terminal
Shinchi Town, Fukushima prefecture (the No.4 wharf of the Soma Port)Gas Business Act
Approximately 20 hectare
1 for LNG ocean vessel (125,000 - 210,000m3 class)
1 for LPG coastal vessel (2,500m3 class: sharing with shipping by LNG coastalvessel)
Storage Facilities
1 LNG tank (ground-type PC*model 230,000 kiloliters)
2 LPG tanks (spherical shape 1,000 tons)
Vaporizers
2 lines (7.0Mpa, 75 ton/h: including 1 backup line)
Shipping Facilities
1 for coastal vessel (maximum 4,800 m3 class)
5 lanes for LNG tank truck (30ton/h)* PC(Pre-stressed Concrete) is a form of concrete which is "pre-stressed" by being placed undercompression prior to supporting any loads beyond its own dead weight and can prevent crack by tensilestress, and this type of concrete often uses for a lot of ground-type LNG tanks.
Note: In addition to the above as the first phase, the second phase to construct additional ground-type
LNG storage tank with a capacity of 230,000 kiloliters (No.2 tank) and additional LNG vaporizationequipment has been started in April 2017, and those facilities of the second phase are planned tocommence commercial operation in spring 2020 at the same time on commencement of commercial
operation on the Fukushima Natural Gas Power Plant.

(Bird View of the Soma LNG Terminal: as of November, 2017)

3/4

2. History and Schedule of the Soma LNG Terminal and Related Matters- November 27, 2013
- November 13, 2014
- October 2015
- October 11, 2016

- April 28, 2017
- End of August 2017
- November 1, 2017
- November 30, 2017
- December 1, 2017
- December 6, 2017
- March 2018
- April 2018
- December 2019
- Spring 2020

: Final investment decision of construction project of the Soma LNG Receiving
Terminal and a Connecting Pipeline: Start of construction on the Soma LNG Terminal: Start of construction on the Soma-Iwanuma Line: Investment decision by FGP for Fukushima Natural Gas Power Plant
and the second phase construction on the Soma LNG Terminal- construction of No.2 LNG tank and additional LNG vaporization equipment: Start of construction on the second phase of the Soma LNG Terminal- No.2 LNG tank
: Completion of the Soma-Iwanuma Line: Commencement of operation on the Soma-Iwanuma Line: Ready for commissioning (mechanical completion) of the Soma LNG Terminal: Start of commissioning on the Soma LNG Terminal: Arrival of the first LNG ship to the Soma Port (planned): Commencement of commercial operation of the Soma LNG Terminal (planned): Start of the second phase on the Soma LNG Terminal- additional LNG vaporization equipment (planned): Start of commissioning of the second phase facilities
on the Soma LNG Terminal (planned): Commencement of commercial operation of the second phase facilities
on the Soma LNG Terminal (planned)###4/4