JERA and Saibu Gas work together to use the expanded Japanese LNG terminal

They announced on Tuesday that JERA, Japan’s largest buyer of liquefied gas, will work with Saibu Gas Holdings to use the Hibiki LNG Terminal. This collaboration is intended to improve domestic fuel supply and expand their global business.

Saibu Gas is a Japanese city gas supplier based on the southern island of Kyushu. In November last year, they decided to expand the capacity at their terminal. This included the construction of a 3rd LNG storage tank, with a 230,000-kilolitre capacity.

JERA, Japan’s largest power generator, has been granted access to the new tank. This will improve its flexibility in responding to a more volatile supply-demand due to increased use of renewable energies and seasonal fluctuations.

Saibu Gas can improve its profitability by sharing the tank that is due to be online in 2029. It will also generate lease income. Companies did not disclose financial information, citing confidentiality.

Takuji Cato, President of Saibu Gas, told reporters that the partnership with JERA was a significant step forward in improving the efficiency at the Hibiki Terminal and also in advancing the company's overall energy business.

The terminal's strategic location will allow both companies to expand their businesses across Asia and internationally, as well as explore next-generation fuels such hydrogen.

Naoto Tanaka is the senior vice president of JERA. He said that in the future, a joint LNG procurement may be considered.

JERA has eight LNG receiving terminals, with a storage capacity totaling 6.57 million kilolitres. Saibu Gas has one terminal that can store 360,000 kilolitres. (Reporting and editing by Barbara Lewis; Yuka Obayashi)

(source: Reuters)