TonenGeneral Sekiyu K.K. (“TonenGeneral” herein), Shimizu Corporation, and Shizuoka Gas Company, Ltd. (“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.