JAPEX starts construction of Soma LNG Terminal
Japan Petroleum Exploration Co., Ltd. (“JAPEX”) today started the construction of an LNG terminal in Shinchi Town, Fukushima Prefecture (Soma Port), the company said in its press release. JAPEX is also preparing to construct a connecting pipeline to convey vaporized LNG gas from the terminal to its main trunk pipeline. JAPEX is supplying natural gas produced domestically in Niigata, Yamagata and Akita prefectures, as well as vaporized LNG gas received from overseas, to users in the production areas and to those in other areas through its pipeline network, which includes the Niigata-Sendai Pipeline and Sh iroishi-Koriyama Pipeline.
JAPEX is also supplying LNG in liquid form to users thro ugh LNG satellite stations utilizing freight containers and tank trucks. JAPEX regards it as its social mission to supply natural gas at a competitive price stably over a long term to respond to an expected increase in natural gas demand in areas including the Tohoku region along the Pacific Ocean including Fukushima, Miyagi and Iwate.
Therefore, JAPEX will pr oceed with the construction of the Soma LNG receiving terminal that will store and vaporize LNG to be offloaded from large ocean-going LNG tankers docked at Soma Port, and the construction of the new 40km pipeline to convey vaporized LNG gas from the terminal to JAPEX’s Niigata-Sendai Pipeline (connecting at the Iwanuma Valve Station in Iwanuma City, Miyagi Prefecture), which is considered JAPEX’s main artery. The completion of the new terminal and pipeline will represent the estab lishment of a robust energy network that is superior in terms of the ability to ensure stable natural gas supply as well as security in emergencies. JAPEX has acquired a 10% interest in a natural gas development and production project in British Columbia, Canada, and a 10% interest in the Canada Pacific 2/4 NorthWest LNG Project, in which natural ga s is transported to the Port of Prince Rupert on the western coast of Canada through pipeline and is liquefied and exported as LNG, including the right to offtake 10% of the LNG.
The project partners are working toward beginning operation at the liquefaction plant by the end of 2018. Under this project, JAPEX will offtake 10% (1.2 millio n tons) of the LNG at the plant (about 12 million tons per annum) and use it as one of th e LNG sources to be received at the Soma LNG receiving terminal, which will be put in to operation in March 2018. JAPEX will thus enhance its integrated operatio n of the natural gas supply business. JAPEX will look to further strengthen its na tural gas business as one of core profit businesses by steadily promoting an inte grated operation and supply system (“gas integration”) that unfailingly supplies cons umers with natural ga s and LNG produced from gas fields in Japan and abroad through pipelines and LNG import terminals.
