Chiyoda announced on Friday the award of the engineering, procurement, and construction (EPC) contract from Saibu Gas for plant facilities to enhance the capacity of their Hibiki LNG facility.
Saibu Gas is adding an additional LNG tank to the two currently in operation with completion aimed for the first half of fiscal year 2029.
According to Chiyoda, a groundbreaking ceremony for the project was held at the Hibiki LNG terminal on July 18.
Chiyoda did not provide further details regarding the contract.
In November last year, Japan’s city gas supplier Saibu Gas took a final investment decision to add the third LNG storage tank and related facilities at its Hibiki facility.
Besides a 230,000-cbm LNG tank, the expansion includes other facilities such as an LNG vaporizer, BOG compressors, and LNG tank truck loading facilities.
The project is worth 50 billion yen ($338 million).
Earlier this year, Japan’s Jera signed a deal with Saibu Gas to use the third Hibiki LNG storage tank.
Based on the agreement, Jera will be able to use the third LNG tank, which can “improve its ability to address growing volatility in the electricity supply-demand balance caused by the large-scale adoption of renewable energy and seasonal disparities in electricity demand.”
Launched in 2014, the 2.4 mtpa Hibiki LNG terminal currently has two 180,000 cbm LNG tanks, a large LNG jetty and small LPG jetty, five LNG vaporizers, 12 truck loading facilities, and four LPG tanks each with a capacity of 950 tons.
Saibu Gas owns 90 percent of the facility while compatriot utility Kyushu Electric holds 10 percent.
The partners decided in 2021 to build an LNG-fueled power plant at the Hibiki terminal.
