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

September 13th, 2024
[Press Release]
Japan Petroleum Exploration Co., Ltd.
JGC Holdings Corporation
Kawasaki Kisen Kaisha, Ltd.
JFE Steel Corporation
Mitsubishi Gas Chemical Co., Inc.
Mitsubishi Chemical Corporation
The Chugoku Electric Power Co., Inc.
Nippon Gas Line Co., Ltd.
PETRONAS CCS Ventures Sdn. Bhd.

Commission a CCS engineering design work in Sarawak, Malaysia
as the “Japanese Advanced CCS Projects” in FY2024
Japan Petroleum Exploration Co., Ltd. (JAPEX), JGC Holdings Corporation (JGC HD), Kawasaki Kisen
Kaisha, Ltd. (“K” LINE), JFE Steel Corporation (JFE Steel), Mitsubishi Gas Chemical Co., Inc. (MGC),
Mitsubishi Chemical Corporation (Mitsubishi Chemical), The Chugoku Electric Power Co., Inc. (EnerGia)
and Nippon Gas Line Co., Ltd. (NGL) (hereinafter “Eight Japanese Companies”) signed a contract withJapan Organization for Metals and Energy Security (JOGMEC) for the commissioning of design work, etc.
(hereafter, the “Work”) related to the Carbon Capture and Storage (CCS) project to inject and store CO₂
emitted from multiple industries in Japan including the Setouchi area in offshore Sarawak, Malaysia, which
is one of the public solicitations regarding the Request for Proposal on the “Japanese Advanced CCS
Projects” in the fiscal year 2024 (hereinafter the “Public Solicitation”).
Eight Japanese Companies that signed the contract will proceed with the Work to examine the equipment
and costs required for the separation, collection and liquefaction of CO₂ emitted from steelworks, power
plant, chemical plant, etc., in Japan. PETRONAS CCS Ventures Sdn. Bhd. (PCCSV) will jointly work with
the Eight Japanese Companies (hereinafter “Nine Participating Companies”) to examine equipment andcosts required for the marine transport to Sarawak (including domestic marine transportation in theSetouchi area) and the injection and storage of the CO₂.
Please refer to the appendix for an outline of the Work, roles of the Nine Participating Companies andprofiles of each company.
JAPEX, JGC HD, “K” LINE, and PCCSV have signed the Key Principles Agreement (KPA) regarding thestudy of commercializing the CCS project on September 22, 2023 (*1) and have signed the Storage SiteAgreement with PETROLEUM Sarawak BERHAD the Sarawak state-run energy company and the state’s
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CO₂ storage rights manager on February 26, 2024. To implement the injection and storage of CO₂ fromdomestic as well as foreign countries such as Japan, JAPEX, JGC HD, “K” LINE, and PCCSV areinvestigating the profitability of the CCS project using depleted gas fields off the coast of Sarawak, offshore
Malaysia including M3 depleted field as CO₂ storage sites by formulating a development plan for the CO₂
storage sites including CO₂ transportation, onshore terminals and pipelines, and evaluating their technicaland commercial feasibility (*2).
In addition, on February 26, 2024, JAPEX, JGC HD, “K” LINE, JFE Steel, EnerGia, and NGL(hereinafter “the Six Companies”) have signed a Memorandum of Understanding regarding joint evaluation
aiming to establish CCS value chain originated from Japan for the commercialization of the CCS project inMalaysia. The Six Companies are conducting the joint evaluation of required facilities and costs(*3) toestablish the CCS value chain, from CO₂ separation and capture at JFE Steel’s steelworks and EnerGia
Group’s power plant to marine transportation (including domestic marine transportation in the Setouchiarea) of liquefied CO₂ to the receiving point(s) in Malaysia. As the joint evaluation progressed, the Six
Companies recognized that their direction of business consideration was in line with those of MGC andMitsubishi Chemical, which were considering decarbonizing their factories. As a result, the Eight JapaneseCompanies concluded the contract with JOGMEC.
By promoting the Work with the aim to early commercialize the CCS project, the Eight JapaneseCompanies will contribute towards carbon neutrality in 2050, including the realization of a de-carbonizedsociety in Asia targeted by the “Asia Energy Transition Initiative (AETI)” (*4).
Notes)*1: Please refer to a joint press JAPEX, JGC HD, and “K” LINE Sign a Key Principles Agreement with PETRONAS for thematuration and development of the CCS Project in Malaysia*2: Please refer to a joint press JAPEX, JGC, and “K” LINE Sign a Storage Site Agreement with PETRONAS and PETROS forthe CCS Project in Malaysia*3: Please refer to a joint press The Chugoku Electric Power and Nippon Gas Line Participate in the Joint Evaluation toEstablish CCS Value Chain Originated from Japan for the CCS Project in Malaysia*4: The Japanese Government’s initiative announced in May 2021, which aims to achieve sustainable economic growth andcarbon neutrality simultaneously in Asia.

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[Appendix] Outline of the Work1) Outline
Storage area

Off the coast of Sarawak, offshore Malaysia

Storage amount

Approximately 1.9~2.9 million tons per year (*)

Emission source

Steelworks, Power plant, and Chemical plant in the Setouchi area

Transportation

Pipelines, domestic coastal boat transportation, oceangoing transportation

Feature of thePromote a highly scalable, wide-area project that connects CO₂ storage regions withproject

substantial injection potential via marine transportation, targeting a wide range ofindustries in the Setouchi area.

(*) Assumption storage capacity in 2030 is 5 million tons per year.
2) Each role of the Nine Participating Companies in the WorkJAPEX

Conduct joint technical and commercial studies on CO₂ transport and storage by

JGC

utilizing the experience and expertise of each company in areas such as oil and“K” LINE

natural gas exploration and development, CO₂ geological storage, plant design andPCCSV(*)

construction, and marine transport of liquefied CO₂JFE SteelCO₂ separate, capture facilities in the JFE Steel’s own operation, and liquefy andshipping facilities in the JFE Steel’s premises

MGC

CO₂ separate and capture facilities in the MGC’s own operation

Mitsubishi Chemical

CO₂ separate and capture facilities in the Mitsubishi Chemical’s own operation

EnerGia

CO₂ separate and capture facilities in the EnerGia’s own operation, and liquefy
and shipping facilities in the adjacent premises

NGL

Infrastructure for domestic coastal boat transport of liquefied CO₂.

(*) PCCSV is participating as a joint proponent, not as a contracting party.

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[Appendix] Outline of Nine Participating Companies
Japan Petroleum Exploration Co., Ltd. (JAPEX)Head Office：

SAPIA Tower 1-7-12, Marunouchi, Chiyoda-ku, Tokyo

Representative： Representative Director and President, Chief Executive Officer, YAMASHITA Michiro
JGC Holdings Corporation (JGC HD)
Head Office：2-3-1, Minato Mirai, Nishi-ku, Yokohama-shi, Kanagawa

Representative： Representative Director, Chairman and Chief Executive Officer (CEO), Masayuki Sato
Kawasaki Kisen Kaisha, Ltd. (“K” LINE)
Head Office：2-1-1, Uchisaiwaicho, Chiyoda-ku, Tokyo

Representative： Representative Director, President & CEO, Yukikazu Myochin
PETRONAS CCS Ventures Sdn. Bhd.（PCCSV）(*)
Head Office：Tower 1, PETRONAS Twin Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur,Malaysia

Representative： Chief Executive Officer, Emry Hisham Yusoff(*) PCCSV is participating as a joint proponent, not as a contracting party.
JFE Steel Corporation (JFE Steel)Head Office：2-2-3, Uchisaiwaicho, Chiyoda-ku, Tokyo

Representative： President and CEO, Masayuki Hirose
Mitsubishi Gas Chemical Co., Inc. (MGC)
Head Office：Mitsubishi Building 2-5-2, Marunouchi, Chiyoda-ku, TokyoRepresentative： Representative Director, President, Masashi Fujii
Mitsubishi Chemical Corporation (Mitsubishi Chemical)
Head Office：1-1-1 Marunouchi, Chiyoda-ku, Tokyo

Representative： Representative Director, Yasuo Shimodaira
Representative Director, Nobuo Fukuda
The Chugoku Electric Power Co., Inc. (EnerGia)
Head Office：4-33 Komachi,Naka-ku,Hiroshima-shi,Hiroshima

Representative： Representative Director, President & Chief Executive Officer, Nakagawa Kengo
Nippon Gas Line Co., Ltd. (NGL)
Head Office：4-12-7 Sanbancho, Matsuyama City, Ehime

Representative： President Yasuhiro Muramatsu
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