Tokyo Gas to build fourth LNG terminal in Japan

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Feb. 3 -- Tokyo Gas Co., which currently operates three LNG regasification terminals in Japan, has selected the coastal city of Hitachi in Ibaraki prefecture as the site for its fourth facility, the firm's first in 20 years.

Tokyo Gas, which operates two LNG receiving facilities in the Yokohama area and one in Sodegaura, will spend some 100 billion yen on the Hitachi facility, which will include docks for tankers, storage tanks, and regasification equipment.

The new terminal is scheduled to start operations in 2017-18, but the firm released no information on its size or its sources of supply.

Generally, the new terminal is expected to help meet the long-term growth in demand from industry as Tokyo Gas' industrial gas sales have been rising at an average of 7%/year since 2003-04 and now account for about 40% of all its gas sales.

More precisely, the decision—announced by Tokyo Gas president Mitsunori Torihara—follows earlier efforts by the firm to increase its supply of gas to the Hitachi region.

In 2007, Tokyo Gas said it would supply Hitachi Ltd.'s power station in the city with natural gas from July through a new satellite LNG terminal in Ibaraki prefecture—a move aimed at expanding the company's natural gas user base to include areas that lack gas pipelines.

A Tokyo Gas spokesman said the firm would deliver LNG to the satellite terminal by truck from its main Sodegaura LNG terminal in adjacent Chiba prefecture before regasifying the LNG and selling it in Hitachi.

Tokyo Gas plans to provide 50,000 tonnes/year of gas to the power station and expects to double the volume by developing new customers in the area, the spokesman said.

The Ibaraki satellite terminal, which has a 2,400-kl tank and three 7.5-tonne/hr regasification units, is the company's second satellite LNG terminal—the first was also built in Ibaraki prefecture in April 2006, with two 400-kl tanks.

Short-term sales down
This week's announcement of the new regasification terminal at Hitachi comes despite figures announced by Tokyo Gas this month showing a slight dip in its recent sales of natural gas.

Total gas sales volume by Tokyo Gas for December 2008 came to about 1.169 billion cu m, down 112.08 million cu m from the same period last year.

Sales of residential gas totaled 326.9 million cu m, down 8.7% from December 2007 due to fewer counted days and higher temperatures, which caused a heating and boiling water demand decrease.

Commercial, public, and medical use volumes totaled 210.3 million cu m, down 7.4% from last year due to fewer counted days and higher temperature days from that of the previous year, which caused heating demand decrease.

Although industrial use represents a larger percentage of Tokyo Gas' sales, recent demand totaled about 442.95 million cu m, down 11.5% from last year as existing customers use less.

Volumes for wholesale supply to other gas companies totaled 189.3 million cu m, down 3.5% from last year. Wholesale gas suppliers sold less to high-volume customers.

On a cumulative basis, Tokyo Gas said, gas volumes from April through December 2008 totaled 986.2 million cu m, a decrease of 0.1% vs. the same period in 2007.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

Quicksilver Canada gets LNG export approval

07/02/2015 Quicksilver Resources Canada Inc. has received approval from the National Energy Board of Canada to export 20 million tonnes/year of LNG from a pos...

Origin lets contract for Otway basin fields

07/02/2015 Origin Energy Ltd., Sydney, has let a $1.3 million (Aus.) contract to Wood Group Kenny for provision of a detailed engineering design for the onsho...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

Shell makes FID on Appomattox deepwater development in Gulf of Mexico

07/01/2015 Royal Dutch Shell PLC has taken a final investment decision (FID) on the Appomattox deepwater development, authorizing construction and installatio...

Woodside-led Browse FLNG venture enters FEED phase

07/01/2015 The Woodside Petroleum Ltd.-led Browse LNG joint venture has entered the front-end engineering and design phase for a floating LNG (FLNG) developme...

Case for Keystone XL has grown stronger, TransCanada tells Kerry

06/30/2015 Canada is taking strong steps toward combating climate change, and the proposed Keystone XL pipeline crude oil pipeline remains in the US national ...

Construction begins on Chinese section of Russia-China Gas Pipeline

06/30/2015

Construction has begun on the Chinese section of the Russia-China Gas Pipeline, according to China National Petroleum Corp.

White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


Operating a Sustainable Oil & Gas Supply Chain in North America

When Wed, Oct 7, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.

register:WEBCAST


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


Emerson Micro Motion Videos

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