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Corporate Information

 
Press Release (Aug 16,2005)
New company founded for joint ownership of LNG ship
                                                         August 16, 2005
                                         Kyushu Electric Power Co., Inc.
                                          Tokyo Electric Power Co., Inc.

Today (August 15 local time) Kyushu Electric Power Co., Inc. and Tokyo
Electric Power Co., Inc. founded a new company, named 'Pacific Hope
Shipping Limited' in Nassau, Bahamas for the purpose of jointly owning
an LNG ship.

Mitsubishi Corporation, NYK LINE, MITSUI & CO., LTD. and Mitsui OSK
Lines also provide financing for the founding of the company.

On March 30 of this year Kyushu Electric Power Co., Inc. and Tokyo
Electric Power Co., Inc. agreed(1) to construct one LNG ship (scheduled
delivery: March 2009). The purpose of the newly founded company is the
joint ownership of this ship. The primary purpose of the ship is the
transport of LNG to be purchased by Kyushu Electric Power Co., Inc..

A formal order for the ship will be placed by the new company, which
will be entrusting crew hiring and ship maintenance and management to
NYK Line.

Moreover, the new company will enter into a time charter contract(2)
with 'LNG Marine Transport Co.(3)', a subsidiary of Tokyo Electric Power
Co., Inc. that handles LNG transport and ship operation for Tokyo
Electric Power Co., Inc.. LNG Marine Transport will handle actual
operation of the ship.

By using this ship, Kyushu Electric Power Co., Inc. hopes to strengthen
the LNG supply chain, to be more economical by controlling shipping
costs, and to create a more flexible transport system, which will
improve the stability of supply.

Tokyo Electric Power Co., Inc. has already implemented a LNG acquisition
scheme by FOB contract using LNG ships(4). By applying their expertise
obtained from holding and operating an LNG ship, they hope to reduce the
cost and improve the stability of LNG acquisition and shipping operations.

(1) Agreed to construct a LNG ship
Kyushu Electric and Tokyo Electric jointly exercised the LNG ship
construction option held by Tokyo Electric with Mitsubishi Heavy
Industries (March 30, 2005).
"Option" is the term used to refer to the right to commission the
building of additional ships under the same price and style conditions
after the building of the first ship when entering into any contract for
the building of a ship, not limited to LNG ships.

(2) Time charter contract
A type of contract entered into by ship users and owners. The user
charters a ship for a set time, and the user pays the owner a usage fee.

(3) LNG Marine Transport Co.
Location:1-1, Shimbashi 1-chome, Minato-ku, Tokyo
President:Makoto Kawaguchi
Founded:October 5, 2004
Business Operations:Maritime transport of liquefied natural gas, and
                    agency thereof.
                    In charge of Tokyo Electric ship no. 3 and ship
                    operations at the new company.
Capital stock:95 million yen
Investment ratio:Tokyo Electric 70%, Mitsubishi 15%, NYK Line 15%

(4) Tokyo Electric's LNG acquisition by FOB scheme
Tokyo Electric already has LNG ship transport operations using LNG ships
owned by a subsidiary. Concrete examples are listed below.
FOB (Free on Board) refers to a transaction wherein ownership and
risk-bearing is transferred from the seller to the buyer the moment LNG
is loaded onto the LNG tanker at the seller's shipping terminal.
The buyer provides maritime insurance and transport, and incurs all
insurance fees and shipping expenses.
Ship 1
 LNG ship for the Malaysia Project owned by Pacific LNG Shipping Limited
 since October 2003.
Ship 2
 LNG ship for the Darwin Project owned by Pacific Eurus Shipping Limited.
 Scheduled to begin operations April 2006.
Ship 3
 Time charter contract signed in December 2004 regarding NYK line and
 the LNG ship for the Darwin Project. Scheduled to begin operations
 April 2008.

Appendix
Outline of new company and LNG ship
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