Tokyo Gas unit and partners to build Niihama LNG terminal in Japan

For illustration purposes only (Image courtesy of Tokyo Gas)

Tokyo Gas Engineering Solutions, a unit of Tokyo Gas, and four Japanese partners said on Tuesday they have decided to build a liquefied natural gas (LNG) terminal at Sumitomo Chemical’s plant in Ehime prefecture in western Japan.

The other partners are Sumitomo group members including Sumitomo Chemical and Sumitomo Joint Electric Power, as well as Shikoku Electric Power and Shikoku Gas.

Besides the LNG receiving terminal, the companies will also build a gas-fired power plant at the site of Sumitomo Chemical’s plant in Niihama.

The companies will set up a joint venture in April for construction and operation of the LNG terminal called Niihama LNG, with Tokyo Gas Engineering Solutions taking a 50.1 percent stake, the joint statement said.

The Niihama LNG terminal will include a 230,000 kilolitre LNG tank that is expected to start commercial operations in February 2022. The 150-megawatt Niihama gas-fired plant is scheduled to begin operations from July in the same year, according to the statement.

To remind, this development was announced last year by Sumitomo as the company was looking on scaling down the use of coal and move to LNG for power production.

Sumitomo said then that the overall project cost was estimated at around 60 billion to 70 billion yen ($547 million to $639 million).

 

LNG World News Staff

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