Japan’s Tokyo Gas to continue with LNG power plant study despite Kyushu Electric exit

Japan’s city gas supplier and LNG importer, Tokyo Gas, said on Wednesday it would continue to work on a planned LNG power plant in Chiba prefecture despite Kyushu Electric’s departure.

Back in 2019, Tokyo Gas and Kyushu Electric decided to conduct a feasibility study to build an LNG-fired thermal power plant in Sodegaura city located along Tokyo Bay.

Under the deal, the partners agreed to work on an LNG-fired thermal power plant at an unused industrial site owned by Idemitsu Kosan.

The 50/50 joint venture planned to build a power plant with up to 2,000 MW capacity.

“However, amidst the turbulent conditions of the global energy situation and after having conducted a comprehensive assessment of the various circumstances surrounding the LNG power plant project, including the fuel and electricity markets, Kyushu Electric Power has decided to discontinue investing resources in the ongoing feasibility study,” it said in a statement on Wednesday.

“Being faced with these conditions, Kyushu Electric Power has concluded that there is no choice but to withdraw from the project located in Sodegaura,” it said.

Tokyo Gas said in a separate statement that the firm intends to continue the feasibility study going forward.

The company said it would continue the feasibility study at the same location “so that it can contribute toward ensuring a stable supply of electricity and realize a responsible transition to a carbon-neutral society.”

According to Tokyo Gas, the investment in the LNG-fired thermal power plant would provide “an adjustment capacity essential for the introduction of renewable energy.”

Tokyo Gas, along Jera, already operates a huge LNG import terminal in Sodegaura.

Earlier this year, the firm and its partners launched the Niihama LNG import terminal on Shikoku island.

It also operates the Hitachi, Negishi, and Ohgishima LNG terminals.

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