Japan’s Jera Co, a joint venture between Chubu Electric and Tepco, expects to have 30-40 mtpa of contracted LNG volumes by 2030-31, compared with 40 mtpa now.
Jera said in its 15-year business plan released on Wednesday it will be changing its LNG purchasing strategy as it is “building procurement and business development platforms capable of adapting to future fluctuations in fuel markets“.
The JV’s long-term LNG offtake volume will be at 35 mtpa as of July this year. However, Jera expects to reduce these volumes to 15 mtpa by 2030-31, according to its business plan.
Jera plans to replace these long-term LNG contracts with a “combination of highly flexible short-term/spot contracts and economically efficient/stable long-term contracts”.
One of the world’s largest LNG buyers also said it is planning to boost its LNG trading capability, as well as expanding its fleet of LNG tankers.
The JV aims to almost double the size of its LNG fleet to 30 vessels by 2030-31. Jera will operate a fleet of 16 LNG tankers as of July 2016, according to the business plan.
Jera’s business plan also includes boosting its domestic and overseas power generation business.
The JV expects to increase overseas power generation capacity in the next 15 years to 20 GW from a current 6 GW, and domestic power generation capacity to 12 GW from 650 MW.
LNG World News Staff