Jera and Kyushu Electric ink decarbonization, LNG power plant deal

Japan’s power firm and LNG trader Jera and compatriot Kyushu Electric Power have signed a deal to work on decarbonization and energy supply and to transfer a stake in the Goi LNG power plant.

Jera said in a statement issued on Monday that the memorandum of understanding further strengthens and expands the existing relationship between the two firms.

To date, Jera and Kyushu Electric have shared ownership of LNG carriers and, through group companies, cooperated in making fuel supply and demand adjustments through LNG trading, it said.

In addition, since fiscal 2022, the two firms also moved forward with discussions aimed at building and expanding supply chains for hydrogen and ammonia for use as fuels in power generation.

Under the new deal, the two firms plan joint development of new power sources including renewable energy, further strengthening of cooperation in making fuel supply and demand adjustments, and to accelerate discussions aimed at building and expanding fuel hydrogen and ammonia supply chains, Jera said.

Goi LNG power plant

Moreover, as part of the development of new power sources under this memorandum of understanding, the companies have signed an agreement to transfer part of Jera’s equity stake in Goi United Generation, which is moving forward with replacement of the Goi thermal power station, to Kyushu Electric.

Jera expects to complete the transfer during October.

Following completion of the transfer, the ownership ratio in the power plant between Jera, Eneos, and Kyushu Electric will be 9:5:1, Jera said.

According to Jera, the thermal power station will have three LNG-fueled units with 780 megawatt each.

The joint venture of Tokyo Electric and Chubu Electric plans to launch the first LNG unit in August 2024, while the second and the third unit are expected to start operations in November 2024 and March 2025, respectfully.

Most Popular

South Korea’s Posco says first LNG carrier to start ops in H2

Posco International, a unit of South Korean steel producer Posco, plans to start shipping LNG with its first dedicated LNG carrier in the second half of this year.

Atlantic LNG shipping rates continue to decrease

Atlantic LNG freight shipping rates continued to decrease this week, while European prices also dropped compared to last week.

Canada’s Cedar LNG names FLNG

Canada’s Cedar LNG, a joint venture of Canada’s Pembina Pipeline and the Haisla Nation, has picked a name for its floating LNG facility, which will be located in the traditional territory of the Haisla Nation, on Canada’s West Coast.

More News Like This

NextDecade, Jera seal 20-year LNG SPA

Japan's Jera has signed a 20-year deal to buy liquefied natural gas from the planned fifth train at NextDecade's Rio Grande LNG facility in Texas.

Energy Transfer, Kyushu Electric ink long-term Lake Charles LNG deal

Energy Transfer, the developer of the proposed Lake Charles LNG export facility in Louisiana, has signed a long-term supply deal with Japan's Kyushu Electric Power.

Jera, Saibu Gas ink deal for third Hibiki LNG tank

Japan's Jera has signed a deal with compatriot Saibu Gas to use the planned third liquefied natural gas (LNG) storage tank at the latter's Hibiki regasification terminal in Kitakyushu.

Jera and EDF expand LNG trading JV to include Japanese power trading

Japan’s Jera and France’s EDF have agreed to expand their LNG and coal trading joint venture, Jera Global Markets, to include Japanese power trading.