Basic Contract Concluded to Purchase Liquefied Natural Gas from the Donggi-Senoro LNG Project

This is to announce that Chubu Electric Power today concluded a basic contract with PT Donggi-Senoro LNG to purchase liquefied natural gas (LNG) from the Donggi-Senoro LNG Project.

This is also to announce that Chubu Electric Power, along with Mitsubishi Corporation, PT Pertamina (Indonesia's state oil and gas company) and PT Medco Energi Internasional (a private sector Indonesian oil and gas exploration and development company), has concluded a basic contract to establish a marketing company that will sell a portion of the LNG we purchase from PT Donggi-Senoro LNG to third parties (the decision to purchase liquefied natural gas produced by the project was announced on September 22, 2010).

Chubu Electric intends to purchase approximately one million metric tons of LNG per year from PT Donggi-Senoro for a period of approximately 13 years from the second half of 2014. We believe that the long-term purchase of LNG from Indonesia, a nation that is both rich in resources and geographically close, will contribute to increasing the stability of power supply to our customers.

In addition, this will represent the first time that Chubu Electric has established a company to market LNG, and we believe that it will increase our fuel procurement flexibility and contribute to the development of new businesses in our fuel procurement value chain.

Chubu Electric will continue to strive to realize economical, stable, and flexible fuel procurement in order to provide a stable supply of power.

 [Overview of contract for purchase of LNG]

*There are no changes from the LNG purchase contract outline reported on September 22, 2010.

[Outline of seller]

[Framework of marketing company]

[Location of Indonesian LNG project]