Japanese engineering company Chiyoda Corporation has won an engineering, procurement, and construction (EPC) contract with compatriot Saibu Gas for an additional tank at the latter’s liquefied natural gas (LNG) facility near Kitakyushu, Japan.
Under the contract, Chiyoda will add a third LNG tank to the two currently in operation at the Hibiki LNG terminal . The groundbreaking ceremony was held on July 18, 2025, and the completion is aimed for the first half of fiscal year 2029.
Saibu Gas decided to expand the Hibiki LNG terminal in November 2024 to address domestic demand for natural gas, enhance supply stability, and expand its global business.
While the terminal’s two tanks have a storage capacity of 180,000 cubic meters (cbm) each, the third one is expected to have a 230,000 cbm capacity.
In April 2025, the Japanese player inked a deal with JERA for reciprocal LNG sharing using the proposed third LNG tank. As explained at the time, the duo hopes to make supply-and-demand adjustments at their respective terminals to address growing volatility in the electricity supply-demand balance caused by the adoption of renewable energy and seasonal disparities in electricity demand.
JERA is looking for other ways to boost Japan’s energy security, including through LNG supply deals. Earlier this week, one such deal was signed with Cheniere Energy, which is set to deliver 1 million tonnes per annum (mtpa) of LNG during the course of 20 years.