October 30, 2015

TonenGeneral Sekiyu K.K.

Shimizu Corporation

Shizuoka Gas Company, Ltd.

Establishment of New Company for LNG Thermal Electric Power Generation

TonenGeneral Sekiyu K.K. (head office: Minato-ku, Tokyo; president: Jun Mutoh; “TonenGeneral” herein), Shimizu Corporation (head office: Chuo-ku, Tokyo; president: Yoichi Miyamoto), and Shizuoka Gas Company, Ltd. (head office: Suruga-ku, Shizuoka City, Shizuoka; president: Hiroshi Tonoya; “Shizuoka Gas” herein) announce the establishment of Shimizu LNG Thermal Power Generation Godo Kaisha (“the new company” herein) for the joint advancement of a project for the construction of a LNG-fueled thermal electric power plant on the premises of the TonenGeneral Shimizu terminal.

The main functions of the new company will include the implementation of technological studies for project development, as well as environmental assessments and associated external relations activities. TonenGeneral will be in charge of overall operations of the new company while continuing to work on LNG procurement methods and other matters involved in the development of the project. Shimizu Corporation and Shizuoka Gas will collaborate on the project with TonenGeneral, with Shimizu Corporation involved primarily in technological studies and Shizuoka Gas in external relations activities.

Establishment of the new company will enable TonenGeneral, Shimizu Corporation and Shizuoka Gas to fully utilize their knowledge and experience while further advancing the development of the power generation project. Final decisions regarding the investment will be made after taking into account factors such as environmental assessment results, construction costs, economic returns, the domestic electricity business environment including policy trends, and energy trends and policies both in Japan and abroad.

Overview of Shimizu LNG Thermal Power Generation Godo Kaisha

Head office:	1900, Sodeshi-cho, Shimizu-ku, Shizuoka-shi, Shizuoka (on the premises of the TonenGeneral Shimizu terminal)
President:	Masanori Ozaki
Paid-in capital:	100Myen
Date established:	October 30, 2015
Investment ratio:	TonenGeneral: 85%; Shimizu Corporation: 10%; Shizuoka Gas: 5%

Overview of planned power plant

Location:	On the premises of the TonenGeneral Shimizu terminal
Land area:	Approx. 130,000m2
Output:	Approx. 1.7 million kW maximum
Fuel:	LNG
Power generation method:	Gas turbine and steam (combined cycle power generation)
Start of operation:	2021 (tentative)

Inquiries	TonenGeneral Sekiyu K.K. W Building, 1-8-15 Kohnan, Minato-ku, Tokyo Media Relations Kosuke Kai, Makio Kozaki, Chie Arai Tel: 03-6713-4400
	Shimizu Corporation 2-16-1 Kyobashi, Chuo-ku, Tokyo Corporate Communication Department Hideo Imamura Tel: 03-3561-1186
	Shizuoka Gas Company, Ltd. 1-5-38 Yahata, Suruga-ku, Shizuoka Corporate Service Department Public Relations and Regional Market Integration Yoshiro Shibuya, Kentaro Hagiwara Tel: 054-284-4141

[The official language for TonenGeneral Sekiyu's filings with the Tokyo Stock Exchange and Japanese authorities, and for communications with our shareholders, is Japanese. We have posted English versions of some of this information on this website. While these English versions have been prepared in good faith, TonenGeneral Sekiyu does not accept responsibility for the accuracy of the translations, and reference should be made to the original Japanese language materials.]

Information provided in this news release is current as of the date of publication. Please note that all such information is subject to change. Please feel free to contact us with any questions.

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