News & Media

09 September, 2020

LNG Market News - Japan

(Source: Nihon Kaiji Shinbun 04/Sep/2020)

Tokyo Gas established trading subsidiary

On September 1, Tokyo Gas established a wholly-owned subsidiary, TG Global Trading (TGT, head office, Minato-ku, Tokyo, President Atsunori Takeuchi, capital 10 million yen), which handles LNG trading business. Taking the liquidity expansion of the LNG market and demand growth mainly in Asia as growth opportunities, the Tokyo Gas Group aims to expand its trading business by maximally utilizing its own LNG carrier fleet, tanks, and sales contracts.

The Tokyo Gas Group has a shipping subsidiary, Tokyo LNG Tanker, which has a scale of 10 LNG carrier fleets. To expand trading, they plan to collaborate with partners such as our own fleet and Centrica in the UK, and actively utilize destination-free LNG.

Under the management vision “Compass 2030,” the Tokyo Gas Group has set a handling amount of 20 million tons of natural gas in 2030, including a handling amount of 5 million tons of LNG trading.

Disclaimer: The English translations provided through this service are the result of translations made by The Japan Maritime Daily or automatically and mechanically translated by The Japan Maritime Daily using an automated translation system provided by a third party after certain processing of the Japanese content licensed by the third party. In terms of the English translation, The Japan Maritime Daily and MarineNet Co., Ltd. make no warranty or burden of any kind, express or implied, including its accuracy, reliability, validity or fitness for a particular purpose. MarineNet Users should fully understand that this service uses an automated translation system that automatically and mechanically recognizes and analyzes information and produces results. The users should understand the above conditions before using this service.


(Source: Nihon Kaiji Shinbun 14/Jul/2020)

JERA will consider abolishing two owned and five shared old facilities for coal-fired power generation

In response to the Ministry of Economy, Trade and Industry’s policy to reduce inefficient old coal-fired power generation facilities by 2030, Japan’s largest power generation company JERA (Headquarters / Tokyo) is expected to consider the closure of 2 owned units and 5 joint investment units. The total power generation capacity of the seven target units is 4.85 million kilowatts, which is equivalent to a simple calculation of less than 10 million tons of steam coal (power generation coal) imports per year. With the increase in procurement due to JERA’s new 4 units under construction (total of 3.02 million kilowatts), there is a possibility that imports of steam coal will decrease by around 3.6 million tons.

JERA currently imports 20 million tons of thermal coal annually for its own coal-fired power plants, and 14 coal dedicated vessels cover the transportation of more than 10 million tons.

In addition, by utilizing about 20 time charters and spot charters, the company handles a total of 45 million tons of coal handled annually, in addition to its own company, including the European EDF group and trading companies.

At a press conference last week, as a long-term policy for 2030, JERA President Satoshi Onoda explained, “Basically, inefficient old coal-fired power plants that are not USC (Ultra Super Critical Pressure) should be abolished.“

Domestic coal-fired power facilities are roughly divided into 3 methods. The USC, which was constructed mainly in the latter half of the 1990s, the Super Critical (SC) mainly in the 1980s and 1990s, and the Sub-Critical (Sub-C) in the 1970s.

Furthermore, in the latest technology, “Integrated coal Gasification Combined Cycle“ (IGCC) was put into practical use in 2013.

Based on the policy of President Onoda, there are two types of inefficient equipment subject to suspension and closure: “SC“ and “Sub-C“.

JERA operates a total of nine coal-fired thermal power plants at three power plants, Hekinan Thermal Power (Aichi Prefecture), Hirono Thermal Power (Fukushima Prefecture), and Hitachinaka Thermal Power (Ibaraki Prefecture), which are wholly owned by JERA. Among them, the inefficient equipment is the two SC systems of Hekinan No. 1 and No. 2 which were constructed in the early 1990s, and are likely to be subject to suspension and abolition by 2030.

On the other hand, at two power plants, Soma Kyodo Power (Fukushima Prefecture) and Joban Joint Power (Fukushima Prefecture), which JERA jointly invests with Tohoku Electric Power, 4 inefficient SCs and 1 Sub-C are in operation.

■Under construction of 4 USC units

Currently, JERA is constructing four USC units at three locations: Hitachinaka, Taketoyo (Aichi), and Yokosuka City (Kanagawa) as new coal-fired power plants. President Onoda said that he will “consider the abolition of old thermal power as a set” for the four new installations, but point out that the abolition and the new installation are not “one-to-one correspondence”. He said that the alternative equipment “includes renewable energy“ and suggested the idea of flexibly changing the power supply composition.

Disclaimer: The English translations provided through this service are the result of translations made by The Japan Maritime Daily or automatically and mechanically translated by The Japan Maritime Daily using an automated translation system provided by a third party after certain processing of the Japanese content licensed by the third party. In terms of the English translation, The Japan Maritime Daily and MarineNet Co., Ltd. make no warranty or burden of any kind, express or implied, including its accuracy, reliability, validity or fitness for a particular purpose. MarineNet Users should fully understand that this service uses an automated translation system that automatically and mechanically recognizes and analyzes information and produces results. The users should understand the above conditions before using this service.