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In November last year, Japan’s city gas supplier Saibu Gas took a final investment decision to add the third LNG storage tank and related facilities at its Hibiki facility.
Besides a 230,000-cbm LNG tank, the expansion includes other facilities such as such as LNG vaporizer, BOG compressors, and LNG tank truck loading facilities.
The project is worth 50 billion yen ($356 million).
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.
Jera said in a statement on Tuesday that this decision to expand the facility provided an opportunity for Jera and Saibu Gas to agree to take concrete steps to strengthen the stable procurement of LNG.
Based on the agreement, Jera will be able to use the third LNG tank, which can “improve its ability to address growing volatility in the electricity supply-demand balance caused by the large-scale adoption of renewable energy and seasonal disparities in electricity demand.”
“For Saibu Gas, the construction of the third LNG tank enables it to capture demand and ensure supply stability, and using the third LNG tank together with Jera also enables reciprocal LNG sharing between the two companies and ensures the terminal’s stable operation and profitability,” the statement said.
In addition, Jera and Saibu Gas plan to “expand profitability by leveraging the advantageous location of Hibiki LNG terminal to drive business in Asia and globally.”
The statement said the two firms will also explore ways to advance the broader energy business over the long term, including next-generation fuels such as hydrogen.
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 of 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.