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

Company Name: Japan Petroleum Exploration Co., Ltd. (JAPEX)
Representative: Masahiro Fujita, Representative Director and President
Security Code:
1662 (First Section of Tokyo Stock Exchange)
Inquiries:
Corporate Communication OfficeTEL.:+81-3-6268-7110

August 24, 2020

Commercial Operation Commencement of FGP Fukushima Natural Gas Power Plant No.2 Unit
Japan Petroleum Exploration Co., Ltd. (JAPEX) announced that the No.2 unit of Fukushima Natural Gas
Power Plant (hereinafter "the power plant") commenced commercial operation today at 0:00 AM. The powerplant has been under construction by Fukushima Gas Power Co., Ltd. (Main Office: Chiyoda-ku, Tokyo,President and Chief Executive Officer: Yoshitaka Ishii, hereinafter “FGP”), which is a project company topromote the project of natural gas-fired power generation at Soma Port in Shinchi Town, Fukushima
Prefecture (hereinafter “the project”), which JAPEX participate as the project partner.
As the basement of the project, the power plant had been under construction at Soma Port No.4 Warf, since
the investment decision in October 2016 by FGP and its shareholders: JAPEX, Mitsui & Co., Ltd., Osaka Gas
Co., Ltd., Mitsubishi Gas Chemical Co., Inc., Hokkaido Electric Power Co., Inc.
Together with the No.1 Unit commenced commercial operation on April 30, 2020, the power plant’s
generation capacity is a total of 1.18 million kW (two units of 0.59 million kW). The power plant uses regasified
LNG (Liquefied Natural Gas) for fuel, as the lowest emission of Green House Gas (GHG) and air pollutants
among fossil fuels*1 and adopts GTCC (Gas Turbine Combined-Cycle) with highly generation efficiency of61%*2 by utilizing the latest technologies to the proven model.
The No.2 LNG tank with 230,000 kL capacity and additional regasification equipment of the second
constriction phase in Soma LNG terminal was transferred to full-scale operation in the time with thecommercial operation of No.2 Unit of the power plant. Under the contract with FGP, JAPEX conducts
management of the facilities constructed in the second construction phase, as well as storage andregasification of LNG fuel used for power generation, and supply of re-gasified gas to the power plant basedon the tolling method*3 this project applies.
Please refer to the appendix for the outline of the power plant and the corporate profile of FGP.
By operating the power plant stably with safety management as the first priority, JAPEX, together with its
five business partners, will stably supply electricity with lower cost and lower environmental burden that canrespond to changes in the market environment such as deregulation of the electric market and reduction ofGHG, as well as making mid to long term contribution for rebuilding industrial bases and new urban
development in Hama-dori area, Fukushima Prefecture, which Fukushima Innovation Coast Framework*4 isaiming for. Also, towards the realization of "Growth to the Integrated Energy Company Utilizing Oil and Gas
E&P and its Supply Basis," as raised in our Long-term Vision and Mid-term Business Plan, JAPEX willproceed on our business and contribution to the local society through our business.
The impact of this matter on the consolidated financial forecasts for the fiscal year ending March 31, 2021
is already recognized in the latest forecasts.
1/3

(Photo in August 2020)

Bird view of Fukushima Natural Gas Power Plant (right and back sides are Soma LNG Terminal of JAPEX)

Ground view of the power plant

Ground view of the power plant(right hand front: Unit 2, back left : Unit1 )(frontside: Unit 2, right hand back: Unit1)

Notes*1: Such substances include carbon dioxide, which compose majority of GHG, Sulfur oxides (SOx), nitrogen oxides (NOx), which
are considered as factors of air pollution, and others.
*2: Generation Efficiency (Based on Lower Heat Generation)*3: Each project partners, which are shareholders of the project, procures LNG on their own as a fuel in accordance with theelectricity they need, and deliver it to FGP. Then, FGP will convert delivered LNG into electricity accordance with the volumeof the LNG and deliver it back to project partners in, for each project partners to sell electricity on their own.
*4: The Power Plant plan is one of the project in "New Energy Generation; Low Environmental Impact Energy Introduction"
included in the Fukushima International Research Industrial City (Innovation Coast) Framework, as a part of "Basic Policy
on Economic and Fiscal Management and Reform" adopted by the Cabinet in June 2014.

< Previous Announcement Link>- “Commercial Operation Commencement of FGP Fukushima Natural Gas Power Plant No.1 Unit,” onMay 7, 2020
2/3

Appendix
Outline of Fukushima Natural Gas Power Plant
NameFukushima Natural Gas Power Plant
Site
Soma Port No.4 Warf, Shinchi Town, Fukushima PrefectureArea
10 haMethod
Gas Turbine and Steam Power (Gas Turbine Combined Cycle (GTCC) type)
Capacity
1.18 million kW (two units of 0.59 million kW)
FuelNatural Gas (Regasified LNG)
* Storage and regasification of LNG will be entrusted to JAPEX Soma LNG
Terminal, located adjacent to the plant
Generating EfficiencyApproximately 61% (Based on Lower Heat Generation)

Historical Events
October 2016
August 2017
October 2017
December 2019

April 2020
May 2020
August 2020

Decision on commercialization of the natural gas-fired power generation project at
the Soma port
Start of preparatory work (ground stabilization etc.)
Start of powerplant construction
Operation Commencement of Unit 1(first parallel operation: started power generation and sent electricity totransmission system)
Commercial Operation Commencement of Unit 1 (April 30)
Operation Commencement of Unit 2
Commercial Operation Commencement of Unit 2 (August 24)

Corporate Profile of Fukushima Gas Power Co,. Ltd. (As of April 30, 2020)
NameFukushima Gas Power Co., Ltd. (Abbreviation: FGP)
Head Office
Sapia Tower, 1-7-12, Chiyoda-ku, Tokyo 100-0005 JapanFoundation
April 23, 2015
Representative
Yoshitaka Ishii, President and Chief Executive Officer(Director and Managing Executive Officer of Japan Petroleum Exploration Co., Ltd.)

Capital Stock

1,074 million yen

Shareholders

Japan Petroleum Exploration Co., Ltd.
33%
Mitsui & Co., Ltd.
29%
Osaka Gas Co., Ltd.
20%
Mitsubishi Gas Chemical Co., Inc.
9%
Hokkaido Electric Power Co., Inc.
9%
Promoting the Natural Gas-Fired Electric Power Generation BusinessFukushima Natural Gas Power Plant(Business Partners)/ Investment Ratio

Main BusinessLocal Office(Capital Stock: 537 million yen / Capital Reserve: 537 million yen)

3/3