Japan’s Saibu Gas to launch terminal expansion in 2029

Spanish Market: Natural gas
28/11/24

Japanese gas retailer Saibu Gas expects to start commercial operations at its Hibiki terminal expansion between the second and third quarter of 2029.

The firm has reached a final investment decision (FID) for the Hibiki terminal expansion, the firm said on 28 November. Saibu's expansion plan includes building a third LNG storage tank with a capacity of 230,000m³, as well as gas production and LNG tank truck-loading facilities.

The total project cost is estimated to be around ¥50bn ($330m), and construction will start around summer 2025.

The firm issued the tender for expansion in March.

This is part of the firm's efforts to meet domestic gas demand "for carbon neutrality", Saibu said. It is also considering introducing e-methane in the future to further enhance its decarbonisation efforts.

Saibu Gas plans to expand its global business by utilising the Hibiki terminal to reload cargoes to sell to overseas customers using isotank containers.

The terminal has two existing 180,000m³ tanks and sits at Kita-Kyushu in west Japan's Fukuoka prefecture. It is jointly operated by Kyushu Electric and Saibu Gas.

The terminal will supply regasified LNG through pipelines to the new 620MW Hibiki LNG-fired power plant at Hibikinada, in the southern Fukuoka prefecture. The facility is expected to start commercial operations in 2026 and it is operated by Hibiki Power, a joint venture between Kyushu (80pc) and Sabu (20pc).

By Naomi Ong

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