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

Monkey Island LNG selects ConocoPhillips’ liquefaction tech

Monkey Island LNG has selected ConocoPhillips’ optimized cascade process liquefaction technology for its planned 26 mtpa liquefaction and export facility in Cameron Parish, Louisiana.

Italy’s Adriatic LNG to resume full ops by mid-September

Italy’s Adriatic LNG import terminal, owned by VTTI and Snam, expects to resume full operations by the middle of this month following the completion of maintenance activities.

Gasgrid says seven Inkoo regas slots booked

Firms have booked seven regasification slots at the Inkoo FSRU-based terminal for 2026 following the completion of the annual allocation procedure, according to Finland’s gas system and LNG terminal operator Gasgrid.

More News Like This

Cheniere, Jera seal long-term LNG SPA

US LNG exporter Cheniere has signed a long-term LNG sale and purchase agreement with Japan's Jera.

Sempra Infrastructure, Jera seal 20-year LNG SPA

US LNG exporter Sempra Infrastructure, a unit of Sempra, has signed a 20-year LNG supply contract with Japan's Jera for volumes from the Port Arthur LNG Phase 2 development project in Texas.

Woodside, Jera ink non-binding winter LNG supply deal

A unit of Australian LNG player Woodside and Japan's Jera have entered into a non-binding heads of agreement for the sale and purchase of LNG cargoes during Japan’s peak winter period.

Jera plans to build new LNG units at Sodegaura power plant

Japan’s Jera plans to build new LNG-fueled units at its Sodegaura power plant in the Chiba prefecture, as part of its plans to replace aging facilities.