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    Kyushu Electric to pull out of gas power project in east Japan

Summary

In September 2019, Kyushu and Tokyo Gas established Chiba-Sodegaura Power Co. to conduct a feasibility study on the joint development of a gas-fired thermal power plant.

by: Shardul Sharma

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Kyushu Electric to pull out of gas power project in east Japan

Kyushu Electric Power has decided to pull out of a gas-fired power project in Chiba Prefecture in eastern Japan, it said on June 15.

In September 2019, Kyushu and Tokyo Gas established Chiba-Sodegaura Power Co. to conduct a feasibility study on the joint development of a gas-fired thermal power plant in Sodegaura City, Chiba Prefecture.

“However, amidst the turbulent conditions of the global energy situation and after having conducted a comprehensive assessment of the various circumstances surrounding the LNG power plant project, including the fuel and electricity markets, Kyushu Electric Power has decided to discontinue investing resources in the ongoing feasibility study,” the company said. “Being faced with these conditions, Kyushu Electric Power has concluded that there is no choice but to withdraw from the project located in Sodegaura.”

Kyushu and Tokyo Gas had planned to start work on the project in 2023 and start operations in 2028. Meanwhile, Tokyo Gas in a separate statement said that it would push ahead with the project on its own.

“Tokyo Gas will continue the feasibility study for the LNG-fired thermal power plant at the same location so that it can contribute toward ensuring a stable supply of electricity and realise a responsible transition to a carbon-neutral society through its investment in an LNG-fired thermal power plant that is expected to provide an adjustment capacity essential for the introduction of renewable energy,” it said.