Osaka Gas Co., Ltd. (Osaka Gas)and Chubu Electric Co., Inc.(Chubu Electric) have reached an agreement withFreeport LNG Expansion, L.P. (Freeport LNG) for their equity participation in an LNG liquefaction business at Freeport, Texas.

On the basis of the agreement, the two companies will make an equity investment of 25%, respectively, in theliquefaction subsidiary of Freeport LNG for its liquefaction business of the first train in the Freeport project to produce 4.4 million tons per annum.   Osaka Gas and Chubu Electric each plans to invest approximately US$ 600 million.  The planned investment is subject to the final investment decision of the Freeport project expected towards the second half of 2014.

Osaka Gas and Chubu Electric are currently in negotiation with the Nippon Export and Investment Insurance (NEXI) for insurance for their investment, and the two companies and Freeport LNGnegotiating with Japanese government financial agenciesfor financing.

With their equity acquisition in the liquefaction business in a US LNG export project, the two companies believe that their commitment in the project will be further strengthened and that it would ensure a successful launch of the project.

With the addition of LNG from Freeport, Osaka Gas and Chubu Electric intend to further their efforts to diversify their procurement of LNG and its pricing indices. Furthermore, the two companies plan to continue their work to develop LNG imports without destination restrictions, thereby achieving stable and competitive LNG supplies in the future.


Overview of Freeport LNG project