Japanese company Tokyo Gas Engineering Solutions, a unit of Tokyo Gas, and four partners have completed the trials of the Niihama LNG plant and started its operations.
Niihama LNG joint venture’s founding partners include Tokyo Gas Engineering Solutions, Sumitomo Chemical , Sumitomo Electric Power, as well as Shikoku Electric Power and Shikoku Gas. They formed the JV back in 2018 to build and operate an LNG import terminal. Its location is at Sumitomo Chemical’s plant in Ehime, western Japan.
The JV said it wrapped up the construction and trial operation of the terminal and began supplying gas to the plant. It also plans to start supplying gas to industries in neighboring areas in March.
Therefore, the operations of the terminal have now started. This is after it received its first LNG cargo from Australia in January.
The Niihama LNG terminal specifically includes a 230,000 kilolitres LNG tank.
Sumitomo Chemical plans to gradually shift to using LNG for its Ehime chemical plant. In addition, the Niihama Kita power plant (to start operation this year) will also use LNG as fuel. With this, Sumitomo wants to reduce annual CO2 emissions by 650,000 tonnes.
The terminal will receive LNG and it will support a stable supply of energy. Moreover, it is to promote the spread of LNG to industries in neighboring areas.
The joint venture and the involved companies will contribute to the promotion of carbon neutrality through the spread and expansion of environmentally friendly natural gas.