This story requires a subscription
This includes a single user license.
The firm said in a statement on Thursday that the total construction costs will reach about 50 billion yen ($329.3 million).
Besides a 230,000-cbm LNG tank, the expansion includes other facilities such as LNG
vaporizer, BOG compressors, and LNG tank truck loading facilities, Saibu Gas said.
According to Saibu Gas, construction is expected to start “around summer 2025”, while the planned start of operations is in the first half of fiscal 2029.
In March this year, Saibu Gas announced it had decided to conduct a tender for the capacity expansion at the Hibiki LNG terminal located on the northernmost city on Japan’s Kyushu Island in Fukuoka prefecture.
Based on the results of the bidding, a decision on whether or not to proceed with the investment will be made by the end of 2024, the firm said at the time.
Domestic demand and international business
The capacity expansion of the Hibiki LNG terminal will enable the firm to meet domestic demand for natural gas and further improve the stability of supply, as well as promote its international business.
“Additionally, it will support realizing gas decarbonization through the introduction of e-methane in
the future, while strengthening energy security as a safeguard against unforeseen circumstances,” the firm said.
Saibu Gas said it will continue to “contribute to the realization of further low-carbon and decarbonization in the Kyushu region towards the goal of carbon neutrality in 2050.”
Launched in 2014, the 2.4 mtpa Hibiki LNG terminal currently has two 180,000 cbm LNG tanks, a large LNG jetty and small LPG jetty, five LNG vaporizers, 12 truck loading facilities, and four LPG tanks each with a capacity of 950 tons.
Saibu Gas owns 90 percent in the facility while compatriot utility Kyushu Electric holds 10 percent.
The partners decided in 2021 to build an LNG-fueled power plant at the Hibiki terminal.
In 2021, Saibu Gas also started delivering LNG via ISO containers from the Hibiki terminal to China’s Jusda Energy Technology.