Conclusion of LNG Sales and Purchase HOA with Malaysia LNG2017/10/25

JERA Co., Inc. (“JERA”) is pleased to announce that it has entered into a Heads of Agreement (“HOA”) with Malaysia LNG Sdn. Bhd. (“Malaysia LNG”) for the sale and purchase of LNG.

JERA plans to purchase approximately up to 2.5 million tons per annum of LNG from Malaysia LNG for a period of three years beginning in 2018.

JERA considers the destination clause in this HOA to be in line with the Survey on LNG Trades report released by the Japan Fair Trade Commission in June 2017. JERA believes this will contribute to its ability not only to respond to uncertainties in LNG demand, but also to put JERA in position to optimize its LNG operations.

JERA will continue to focus on building and maintaining an optimal LNG procurement portfolio that enables economical and competitive procurement, as well as flexibility to respond to changes in the business environment.

Outline of HOA

Seller: Malaysia LNG Sdn. Bhd.

Buyer: JERA Co., Inc.

Contract period: April 2018 to March 2021 (3 years)

Contract volume: Approx. up to 2.5 MTPA

Delivery mode: DES and FOB