TEPCO : Fuels | Recent Business Developments in Fuels


	(excerpted from company web site)

TEPCO actively participates in the Darwin LNG Project through two subsidiary companies, Tokyo Timor Sea Resources Inc. and TEPCO Australia Pty Ltd. The activities of these subsidiaries include the development and production of the Bayu-Undan field, pipeline transportation and liquefaction of gas. Following the start of production in the Bayu-Undan field on February 10th, 2004, the Bayu-Undan field Development Project completed its first shipment of condensate on March 30th. The first shipment of LPG followed on June 20th.

Construction of the subsea pipeline in the Timor Sea and the liquefaction plant in Darwin is proceeding smoothly, and the commencement of LNG shipments to TEPCO, which will be approximately 2 million tons per year, is planned for the first quarter of 2006.


Location of Bayu-Undan Field:	500 km off the coast of Darwin, Australia
Location of Bayu-Undan Field:	250 km off the south coast of East Timor
Reserves:	LPG/Condensate - 400 million barrels
Reserves:	Natural Gas - 3.4 trillion cubic feet




	TEPCO commissioned the construction of first LNG vessel “Pacific Notus” in 2001 and it has been engaged in transportation of Malaysian LNG since October 2003. The second vessel “Pacific Eurus” will be in operation in March 2006 for transportation of Darwin LNG. By these activities, TEPCO expects flexibility and total cost reduction in the procurement of LNG.