Final Investment Decision and Execution of Loan Agreements for Freeport LNG Project in U.S.

We are pleased to announce that (i) FLNG Liquefaction, LLC ("FLIQ1") has made a final investment decision for the Freeport LNG project in Texas, USA, and (ii) FLIQ1,which (a) has executed the liquefaction tolling agreements with Osaka Gas Co., Ltd.("Osaka Gas") and Chubu Electric Power Co., Inc. ("Chubu Electric"), and (b) plans to construct and operate the first LNG liquefaction train, has executed the loan agreements, in project finance scheme, totalling up to approximately USD 3.8 billion, with the Japan Bank for International Cooperation ("JBIC") and other commercial banks on October 29, 2014 (US time) (October 30, 2014 (Tokyo time)).

The loans are co-financing by JBIC and other six commercial banks^*, and Nippon Export and Investment Insurance ("NEXI") will provide the Overseas Loan Insurance (for Natural Resources and Energy) for the loans from such other commercial banks.

Each of Osaka Gas and Chubu Electric has decided to acquire a 25% equity of FLIQ1 in February 2014, and will make first investment at the same timing of the first disbursement of the loans. Our investments are supposed to be covered by the NEXI's Overseas Investment Insurance (for Natural Resources and Energy), which covers the risk of revocation of the orders permitting the export of LNG.

Prior to the execution of the loan agreements, Osaka Gas and Chubu Electric have entered into the Precedent Agreement with Gulf South Pipeline Company, LP, which is one of the major pipe-line companies in the USA. This agreement enables Osaka Gas and Chubu Electric to procure natural gas from the major sources located in the USA.

(Note)The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, Mitsubishi UFJ Trust and Banking Corporation, ING Bank N.V., Tokyo Branch

Overview of Freeport LNG Project

Place	Freeport, Texas, USA
Operation Start	2018 (planned)
Nameplate Liquefaction Capacity	Approximately 4.4 million tonnes p.a. x 3 trains

Overview of Osaka Gas

Name	Osaka Gas Co., Ltd
Place	4-1-2, Hiranomach, Chuo-ku, Osaka
Representative	Hiroshi Ozaki

Overview of the Chubu Electric Power

Name	Chubu Electric Power Co., Inc.
Place	1, Higashi-shincho, Higashi-ku, Nagoya
Representative	Akihisa Mizuno

Overview of Freeport

Name	Freeport LNG Expansion, L.P. (FLEX)
Place	Houston, Texas, USA
Owner	Freeport LNG Development, L.P. (FLNG)
FLNG Partners	Michael Smith(27.5%), Zachry Hastings subsidiary (55%), Dow Chemical subsidiary (7.5%), Osaka Gas subsidiary (10%)

Overview of the First Train Project Company

Name	FLNG Liquefaction, LLC
Place	Houston, Texas, USA
Members	FLEX (50%), Osaka Gas subsidiary (25%), Chubu Electric Power subsidiary (25%) (after making investments by Osaka Gas and Chubu Electric)

Overview of Gulf South Pipeline Company

Name	Gulf South Pipeline Company, LP
Place	Houston, Texas, USA

Project Scheme