Press Releases 2013

We have agreed with Astomos Energy Corporation on the initial terms and conditions of the sale and purchase of US-produced LPG (Liquefied Petroleum Gas). We will continue discussions with Astomos Energy Corporation towards the conclusion of the sale and purchase contract.

Based on the contract to be concluded, we are planning on purchasing a total of approx. 200,000 tons of US-produced LPG for 3 years starting from 2013. The price index to be applied is the US propane linked price^*1. It is our first time to purchase US-produced LPG and apply the US propane linked price as an index.

As part of the diversification of fuel resources, LPG purchased from the Middle East and Australia is being used as fuel^*2 at Anegasaki Thermal Power Station.  We have reached an agreement on the initial terms and conditions of the transaction with Astomos Energy Corporation taking into consideration that there will be a certain level of demand for LPG for the three years and the high fuel economics expected for the US-produced LPG.

Astomos Energy Corporation purchases and delivers the LPG produced in the LPG export terminal of Enterprise Product Partners LP in Houston, Texas, U.S. and sells part of it to TEPCO. We expect purchasing LPG from Astomos Energy Corporation will contribute to the diversification of LPG supply sources and fuel cost reductions.

We will continue our efforts towards stable and cost-efficient power supply and stable procurement of competitive fuels.

*1 US propane linked price incorporates LPG price at Mont Belvieu in Texas, U.S. which is a price index of the LPG produced in the U.S.
*2 Anegasaki Thermal Power Station is TEPCO's only thermal power station which uses and stores LPG as part of the diversification of fuels (LPG has been used since 1978). In 2011, approx. 950,000 tons (the maximum in the past) of LPG was consumed as a result of the shutdown of nuclear power stations (The amount of LPG consumed during the period from April 2012 to January 2013: Approx. 1,290,000 tons).