Japan’s oil refiner TonenGeneral Sekiyu said it established a JV company with Shimizu and Shizuoka Gas to build an LNG-fueled power plant at its Shimizu terminal, southwest of Tokyo.
The main functions of the joint company named Shimizu LNG Thermal Power Generation Godo Kaisha will include the implementation of technological studies for project development, as well as environmental assessments and associated external relations activities, the companies said in a statement.
TonenGeneral, with an 85 percent stake, will be in charge of overall operations of the new company while continuing to work on LNG procurement methods and other matters involved in the development of the project.
Shimizu and Shizuoka Gas, with 10 percent and 5 percent stake respectively, will collaborate on the project with TonenGeneral, with Shimizu involved primarily in technological studies and Shizuoka Gas in external relations activities.
Final decisions regarding the investment will be made after taking into account factors such as environmental assessment results, construction costs, economic returns, the domestic electricity business environment including policy trends, and energy trends and policies both in Japan and abroad, according to the statement.
The companies expect the combined cycle power plant with a maximum production capacity of 1.7 million KW to be operational in 2021.
LNG World News Staff; Image: TonenGeneral