The concept of developing a small-scale LNG import terminal and adjacent power station could be replicated elsewhere in Japan. Osaka Gas said it is “working toward winning orders for LNG terminal construction and consulting services outside our territory and overseas, by effectively applying the know-how acquired through our extensive experience.”
The business model is striving to take advantage of low-cost LNG, as Osaka Gas is advancing its strategy of shale investments abroad. Venturing into the U.S. upstream sector, the Japanese utility is expanding its East Texas shale-gas project through the Sabine Oil & Gas Corp to ensure a stable fuel supply for power generation projects at home. In addition, Osaka Gas receives cargoes from Freeport LNG in Texas.
On Kyushu, Japan’s third-largest island, the LNG-to-Power project consists of a terminal jetty, one LNG tank and LNG vaporizers to enable supplies to the 35 MW gas-fired power plant.
Projects put forward in FY2021 business plan
Daigas Group’ financial year 2021 business plan focuses on the development of competitive energy infrastructure, notable high-efficiency gas power plants and renewables. By expanding LNG sales within Japan, Daigas seeks to accelerate the replacement of coal and heavy fuel oil with cleaner-burning natural gas for power generation.
Launch of gas value chains are planned for the Greater Tokyo area, including gas supply in Ogishima. An array of gas-fired power projects are under construction or in planning: The 1,180 MW Fukushima Gas Power Plant is being fast-tracked for a start up this April, while the just under 50 MW Ichihara biomass power plant is due to start operation in October 2020.
By 2022, the integrate Hikumka LNG-to-Power plant is slated to start up while the large-scale 1,245 MW Himeji Gas Power Plant is due to commence commercial operations in 2026.