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

BP Energy Outlook projects global energy demand to jump 37% by 2035

02/17/2015 Global demand for energy is expected to rise by 37% from 2013 to 2035, or by an average of 1.4%/year, due in large part to ongoing economic expansi...

Bear Head LNG exempted from 2012 Canadian environmental act

02/16/2015 Liquefied Natural Gas Ltd.’s wholly owned subsidiary Bear Head LNG Corp. received notice from the Canadian Environment Assessment Agency (CEAA) tha...

Watching Government: New York moves ahead on LNG

02/16/2015 New York, a state more often associated with fiercely resisting unconventional natural gas exploration and production, established a program to reg...

BG's 2015 budget 'significantly lower' than 2014

02/16/2015 BG Group plans capital expenditures on a cash basis of $6-7 billion in 2015, a range it says is "significantly lower than 2014" due to &q...

Alaska LNG project partners file resource reports with FERC

02/12/2015 A series of draft environmental and socioeconomic reports for the Alaska LNG project have been submitted to the US Federal Energy Regulatory Commis...

Australia Pacific LNG receives first gas at Curtis Island

02/12/2015 The Origin Energy Ltd.-led Australia Pacific LNG (APLNG) has reached a major milestone with first gas arriving at the group’s LNG plant on Curtis I...

InterOil wins arbitration over rights dispute with Oil Search

02/11/2015 The International Chamber of Commerce arbitration panel in London has found in favor of InterOil Corp. in its battle with Oil Search Ltd. over pree...

Study finds FLNG scheme ‘viable’ for Pandora field development

02/11/2015 A recent study has found that Cott Oil & Gas Ltd’s plans to use a floating LNG (FLNG) vessel for development of Pandora gas field in the Gulf o...

OGJ Newsletter

02/09/2015

International news for oil and gas professionals

White Papers

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

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by
Available Webcasts

On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

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