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Start of Construction of Soma LNG Terminal
Japan Petroleum Exploration Co., Ltd. (hereafter, “JAPEX”) today started the construction 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 and Akita prefectures, as well as vaporized LNG gas received from overseas, to users in the production 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 freight containers and tank trucks.

JAPEX regards it as its social mission to supply natural gas at a competitive price stably over a long term to respond to an expected increase in natural gas demand in areas 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-Sendai Pipeline (connecting at the Iwanuma Valve Station in Iwanuma City, Miyagi Prefecture), which is considered JAPEX’s main artery. The completion of the new terminal and pipeline will represent the establishment of a robust energy network that is 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 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 are working 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 12 million 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 will thus 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 (“gas integration”) 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 Terminal and 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 is possible), Large ocean-going LNG tankers receiving berth, LNG domestic vessel shipping and receiving berth (a future expansion is possible), two LNG vaporizers (a future expansion is possible), gas heat capacity value control facilities for vaporized gas, LNG tank truck loading facilities, other facilities
• Investment amount: Approximately 60 billion yen (including the investment amount for the connecting pipeline)
• Applicable Law: Gas Business Act

Enbridge to Connect JACOS Hangingstone Project to its Regional System
Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that it will construct facilities and provide transportation services to the Japan Canada Oil Sands Limited (JACOS) Hangingstone Oil Sands Project (the Hangingstone Project). JACOS and Nexen Energy ULC, a wholly owned subsidiary of CNOOC Limited, are partners in the project, which is operated by JACOS. Enbridge and JACOS have entered into a long term agreement for transportation services from Cheecham to Edmonton on Enbridge's regional infrastructure. Commercial terms for the incremental facilities to connect Hangingstone to Cheecham have been agreed to but execution remains subject to finalization of the definitive agreements which are imminent.

EPC Contract for Oil Sands SAGD Facilities in Canada
Toyo Engineering (TOYO, President and CEO Katsumoto Ishibashi), through its Canadian subsidiary Toyo Engineering Canada Ltd., has signed a contract to provide Engineering, Procurement and Construction (EPC) service to Japan Canada Oil Sands Limited (JACOS), a subsidiary of Japan Petroleum Exploration Co., Ltd. (JAPEX), for their Oil Sands Bitumen Production SAGD* Central Processing Facilities and Utilities & Infrastructure at Hangingstone area (50 km south west from Fort McMurray) in Alberta, Canada. The completion of the facility is targeted 2.5 year after the contract.

Bechtel Wins Contract for Liquefied Natural Gas Facility in Canada
Bechtel Corporation today announced it has been selected by Pacific NorthWest LNG to perform front end engineering and design (FEED) for a proposed liquefied natural gas (LNG) facility in British Columbia, Canada. The FEED covers the gas liquefaction plant, LNG storage tanks, and marine infrastructure that will allow for gas exports. The facility will be located on Lelu Island within the District of Port Edward on land administered by the Prince Rupert Port Authority.

KBR Awarded FEED Contract for World-Scale LNG Project in British Columbia
KBR (NYSE: KBR) today announced it was awarded a contract by Pacific NorthWest LNG Ltd., a subsidiary of Malaysia’s state-owned oil company (PETRONAS) and Japan Petroleum Exploration Co., Ltd. (JAPEX), to execute front-end engineering and design (FEED) and early detailed engineering work for a world-scale LNG export facility at Lelu Island near Prince Rupert, British Columbia. KBR is partnered with JGC Corporation for the project.

Technip, in consortium with Samsung and Huanqiu, awarded contract for LNG project in Canada
Technip, leader of a consortium with Samsung Engineering Co Ltd and China Huanqiu Contracting & Engineering Corporation, was awarded by Pacific NorthWest LNG Limited Partnership a contract for the front end engineering design and the early detailed engineering services of a grassroot liquefied natural gas (LNG) project. This project is proposed to be located on Lelu Island, British Columbia, Canada.

Completion of Participation in Natural Gas Development & Production Project and LNG Project in British Columbia, Canada
Japan Petroleum Exploration Co., Ltd. (JAPEX) previously announced in our news release on March 4th, 2013 that it entered into a Heads of Agreement with Petroliam Nasional Berhad (PETRONAS) to participate in a natural gas development and production project in British Columbia, Canada and a planned LNG project on the western coast of the same province, both of which are undertaken by PETRONAS through Progress Energy Canada Ltd and its affiliates.

Oil Production in Indonesia’s Terang Gas Field Reaches 10 Million Barrels
The Japan Petroleum Exploration Co., Ltd. (JAPEX) and Mitsubishi Corporation (MC) are pleased to announce that total production at the Terang gas field located in the Kangean PSC area in East Java, Indonesia has reached 10 million barrels of oil equivalent since the field started commercial production on May 26, 2012.

JAPEX Participates in Natural Gas Development & Production Project and LNG Project in British Columbia, Canada
Japan Petroleum Exploration (JAPEX) is pleased to announce that it has entered into a Heads of Agreement with Petroliam Nasional Berhad（PETRONAS）to participate in a natural gas development and production project in British Columbia, Canada and a planned LNG project on the western coast of the same province, both of which are undertaken by PETRONAS through Progress Energy Canada Ltd and its affiliates.

Final Investment Decision on Hangingstone Oil Sands Project in Alberta Province, Canada
Japan Petroleum Exploration Co, Ltd. (Japex) has made the Final Investment Decision (FID) on an oil sands project in the Hangingstone area in the Province of Alberta, Canada (Hangingstone Project) at the meeting of the Board of Directors today.