Japex to build Japan's first LNG plant


Japan Petroleum Exploration Co. Ltd. (Japex) has awarded Nippon Steel Corp. a contract to build the country's first LNG plant.

Japex has agreed to provide domestically processed liquefied natural gas to Asahikawa Gas Co., a local distributor in Hokkaido, Japan. AGC currently uses LPG.

Japex produces gas from the Yufutsu oil and gas field in southern Hokkaido. That field is 120 miles from Asahikawa's facilities, which are too remote and have too limited demand to support a pipeline, said a Japex spokesman.

Yufutsu is expected to produce 40 MMcfd of gas by 2005, up from the current 10 MMcfd. Natural gas from the field is delivered to customers in Tomakomai, Chitose, and Sapporo areas through a 45-mile pipeline.

Japex decided a small LNG plant at the Yufutsu field and delivery via existing railway would be the best solution. Japex had used a similar method to supply imported LNG to remote customers in Honshu (OGJ, Aug. 21, 2000, p.48).

The company will begin building the 150 tonne/day plant in April 2001. First deliveries to AGC will begin in early 2003.

There are 15 local distribution companies in Hokkaido, isolated from each other, each with limited demand.

Japex is targeting six areas in Hokkaido, including Hakodate (160 miles from Yufutsu field), Muroran (50 miles), and Obihiro (120 miles) for expansion, depending on demand growth.

Related Articles

DOE approves LNG exports to non-FTA countries from Oregon project

03/24/2014 The US Department of Energy conditionally approved Jordan Cove Energy Project LP’s application to export LNG through its proposed terminal on Orego...

INGAA Foundation forecasts oil, gas infrastructure outlays to 2035

03/18/2014 An estimated $640.9 billion, or an average $29.1 billion/year, will need to be spent on US and Canadian midstream crude oil, natural gas, and natur...

Cameron LNG awards export-plant contracts

03/17/2014 Cameron LNG LLC has awarded CB&I and Chiyoda International Corp. a $6 billion engineering, procurement, and construction contract to build a 13...

IOC to buy stake in proposed PNW LNG terminal

03/17/2014 Indian Oil Corp. Ltd. (IOC) has signed an agreement with Progress Energy Canada Ltd., Calgary; Pacific Northwest LNG Ltd. (PNW LNG), Vancouver, BC;...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected