Establishment of JERA OIL STORAGE as a Company Dedicated Exclusively to the National Petroleum Stockpiling Programme2026/10/02

Yesterday, JERA Co., Inc. (“JERA”) has established JERA OIL STORAGE Co., Inc. (“JERA OIL STORAGE”) as a dedicated operating company to manage the operation of national petroleum stockpiling bases currently operated by JERA and its affiliated subsidiaries (the “JERA Group”) under a joint contracting arrangement with the Japan Organization for Metals and Energy Security (JOGMEC).

To date, the JERA Group, through its operation of four national petroleum stockpiling bases (Tomakomai-Tobu, Akita, Fukui, and Shibushi), has accumulated knowledge and technical skills in equipment maintenance, safety management, and emergency response, and contributed to the stable operation of national petroleum stockpiling bases. To further enhance safe and stable operations and ensure the transfer and advancement of operational expertise, we will establish an operating structure dedicated exclusively to the oil stockpiling business.

Going forward, we will systematically transition to a new operating structure centered on JERA OIL STORAGE, while continuing to work together with our affiliated subsidiaries. As part of this effort, JERA and JERA OIL STORAGE plan to conclude an absorption-type company split agreement by the end of 2026, under which JERA’s oil stockpiling business is expected to be transferred to JERA OIL STORAGE around April 2029.

Moreover, national petroleum stockpiling base operations currently contracted to the JERA Group (for the period FY 2023 through FY 2028) will continue to be steadily carried out under the current structure, with the entire JERA Group working as one to ensure safe and stable operations.

The JERA Group will continue contributing to Japan’s energy security and energy stability through its operation of national petroleum stockpiling bases by working both to ensure their safe and efficient management and to maintain a system for the timely and efficient release of petroleum in times of emergency.

Overview of JERA OIL STORAGE