Decision on Commercialization of Natural Gas-Fired Power Generation Project at Soma Port in Fukushima Prefecture and Participation of New Business Partners in the Project

Oct. 11, 2016

Fukushima Gas Power Co., Ltd.
Japan Petroleum Exploration Co., Ltd.
Mitsui & Co., Ltd.
Osaka Gas Co., Ltd.
Mitsubishi Gas Chemical Company, Inc.
Hokkaido Electric Power Co., Inc.

Main Contents

At the shareholders meeting of Fukushima Gas Power Co., Ltd. (hereinafter "FGP") held on October 11, 2016, two important resolutions concerning the Natural Gas-fired Power Generation Project at Soma Port in Shinchi Town, Fukushima Prefecture (hereinafter "Project") were passed. By these shareholder resolutions, commercialization of this Project and, in addition to Japan Petroleum Exploration Co., Ltd. (hereinafter "JAPEX") and Mitsui & Co., Ltd. that are shareholders since the founding of FGP, the participation of new shareholders, Osaka Gas Co., Ltd., Mitsubishi Gas Chemical Company, Inc., and Hokkaido Electric Power Co., Inc., were approved. The said three new shareholders will also assume the role of business partners for this project.

FGP has been promoting studies and surveys towards the realization of this Project and conducting environmental assessment in accordance with the Environmental Impact Assessment Law for the purpose of contributing to the stable supply of electric power and revitalization of the coastal area of Fukushima Prefecture from the damage caused by the Great East Japan Earthquake. By these resolutions, it was officially decided to commence the construction of the "Soma Port Natural Gas-fired Electric Power Generation Plant (tentative name)" (hereinafter "the Power Plant") after the completion of the environmental assessment, and, in parallel with the assessment process, start preparations for the construction of the Power Plant. Furthermore, the newly joined three companies which have expertise in LNG procurement and the power generation business will add strength to the business promotion organizational structure of this Project. From now on, FGP will lead this project in collaboration with the five shareholder companies as business partners.

The Power Plant will have two power generation GTCC (Gas Turbine Combined-Cycle) units which can generate 590-thousands kilowatts. In addition, FGP plans to construct a new aboveground type LNG storage tank which can store 230 thousand kiloliters and LNG vaporization equipment on the site of JAPEX's Soma LNG Terminal, which is under construction at FGP's neighboring plant site. FGP will outsource to JAPEX construction management and operations of the new LNG tank and vaporization equipment, including safekeeping and vaporization of LNG, as well as supply of vaporized natural gas to the Power Plant. FGP will continue to proceed with the environmental assessment and conclude contracts with EPC (Engineering Procurement and Construction) contractors, aiming to commence the power plant construction upon completion of the environmental assessment expected to be finished by the summer of 2017, and start commercial operations in the spring of 2020.

The Power Plant plan is positioned as one of the "New Energy Generation; Low Environmental Impact Energy Introduction" projects and is expected to play a core role under 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 2014. We will contribute to the reconstruction and new development of industry and regeneration of the cities along the coastal area of Fukushima Prefecture that are aimed for under the framework.

Please refer to the appendix given in the link about the latest information on FGP, including an outline of the power plant, shareholders, and their investment ratio.

Based on changes to the market environment such as introduction of the Electricity System Reform Bill to realize full liberalization of entry to the electricity retail business and demand for reduction of CO2 emissions, FGP and the five business partner companies will continue contributing to the stable supply of electric power generation at low cost and with a low environmental burden, for the growth of the economy and industry in the surrounding area of the Power Plant.

1. The Outline of the Electric Power Generation Plant (Planned)

Name Soma Port Natural Gas-fired Electric Power Generation Plant (Tentative Name)
Site Soma Port No.4 Warf, Shinchi Town, Fukushima Prefecture
* Neighboring JAPEX Soma LNG Terminal
Method Gas Turbine and Steam Power (Combined Cycle)
Fuel Natural Gas (Vaporized LNG)
* Outsourcing operation of LNG vaporization and vaporized natural gas supply to JAPEX Soma LNG Terminal neighboring the power plant site
Capacity 1.18 million kW (2 units of 0.59 million kW)
Schedule 2017 Summer Commencement of Construction
* After Completion of Environmental Assessment Process
2019 Autumn Start of Commissioning
2020 Spring Commencement of Commercial Operation (Generate 0.59 million kW)
* Generate 1.18 million kW after 2020 Summer
The Bird's-eye View Image of the PlantThe Bird's-eye View Image of the Plant
Wide-Area Map of the Plant SiteWide-Area Map of the Plant Site

2. Corporate Profile (As of October 11, 2016)

Name Fukushima Gas Power Co., Ltd.
Head Office Sapia Tower, 1-7-12, Chiyoda-ku, Tokyo 100-0005 Japan
Tel: +81-3-6268-7128
Date of Foundation April 23, 2015
Representative Shoichi Ishii, President and Chief Executive Officer
(Executive Vice President and Executive Officer)
Capital Stock Capital Stock: 537 million yen / Capital Reserve: 537 million yen
Shareholders (Investment Ratio) Japan Petroleum Exploration Co., Ltd. 33.0%
Mitsui & Co., Ltd. 29.0%
Osaka Gas Co., Ltd. 20.0%
Mitsubishi Gas Chemical Company, Inc 9.0%
Hokkaido Electric Power Co., Inc. 9.0%
Business Area Promoting the Natural Gas-Fired Electric Power Generation Business

This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.


For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-80-5912-0321
Facsimile: +81-3-3285-9819
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