Press Release
Joint ownerships of LNG carriers for Chubu Electric
May 16, 2014
Chubu Electric Power Co.,Inc.
Chubu Electric Power Co., Inc. ("Chubu Electric") concluded long-term charter contracts(*1) with LNG carrier- owning companies, Trans Pacific Shipping 1 Ltd. ("TPS1") and Trans Pacific Shipping 2 Ltd. ("TPS2") in October 2012, for the purpose of transporting LNG from projects in Australia(*2).
We would like to announce that Chubu Electric decided to invest in each LNG carrier-owning company. In light of this investment, we will become a joint owner of each vessel.
Chubu Electric will acquire 40% among the share of each LNG carrier-owning company. Looking at the breakdown of this, we will acquire 10% from Mitsubishi Corporation ("MC") and 30% from Nippon Yusen Kabushiki Kaisha ("NYK") for TPS1. Meanwhile, for TPS2, we will acquire 10% from MC and 30% from Mitsui O. S. K. Lines, Ltd. ("MOL").
The actual timing for the investment is scheduled to be after delivery of each vessel.
In an endeavor to step up our fuel procurement capacity, Chubu Electric will participate in businesses such as upstream development, liquefaction, transportation, and trading.
By participating in shipping business, we will strive to advance our LNG transportation structure, and achieve further stability, economy, and flexibility in LNG procurement.
(Note1):Overview of the long-term charter contracts (see the table below)
|
LNG Carrier No. 1 |
LNG Carrier No.2 |
|
|
Owner |
Trans Pacific Shipping 1 Ltd. |
Trans Pacific Shipping 2 Ltd. |
| Charterer |
Chubu Electric or our subsidiaries |
Chubu Electric or our subsidiaries |
|
Term of Charter |
From around 2017 (about 15 years) |
From around 2019 (about 20 years) |
(Note2):Primarily assuming the Gorgon LNG Project and the Ichthys LNG Project.