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KHI announced on Thursday that the JV won the contract from Sakaide LNG, in which Shikoku Electric Power has a 70 percent share, Cosmo Oil 20 percent, and Shikoku Gas 10 percent.
Sakaide LNG aims to increase storage capacity, create a more flexible LNG receiving system, and boost its gas supply, as demand for natural gas is expected to grow due to the planned construction of Shikoku Electric’s Sakaide No.5 power plant and the conversion of factories and other consumers to LNG fuel, KHI said.
Back in 2010, Kawasaki completed the 1.2 mtpa Sakaide LNG terminal in the Shikoku region.
The facility has one 180,000-cbm tank, three vaporizers, and truck loading facilities.
Under the new contract, Kawasaki Heavy will build one 180,000-cbm LNG tank, while JFE Engineering will handle the plant facilities and civil engineering and construction work.
These include LNG vaporizers with a capacity of 50 t/h.
Kawasaki Heavy did not provide the contract pricing details.
The company said that the vaporization facility is expected to be completed in fiscal 2029 and the LNG tank in fiscal 2031.
Japan is the world’s second-largest importer of LNG, and it reported a 1.4 percent decrease in its LNG imports in 2025.
During the first two months of this year, Japan imported more LNG than China.
Japan’s LNG terminals took approximately 12.06 million tonnes, 1.53 million tonnes more than China.
