Osaka Gas and Chubu Electric Power announced today to conduct jointly a feasibility study on construction of a natural gas pipeline connecting Osaka Gas' high pressure trunkline with LNG terminal of Chubu Electric.

A pipeline to be studied by the two companies involves a link between the high-pressure trunkline currently being built by Osaka Gas (46km in length, scheduled for completion in 2007) with the existing terminal (Kawagoe or Yokkaichi) of Chubu Electric. The two companies plan to proceed with technical and economic examination of a new pipeline including its route, specifications, construction costs, economics, and other points.

Osaka Gas expects that a pipeline link will contribute to increasing the company's gas supply capabilities and to improving stability of supply. Chubu Electric, on the other hand, considers that a pipeline linkage with Osaka Gas will function as a back-up for natural gas supply for its power generation and help to increase the reliability of power supply.