LNG

Jan 2 (LNGJ) - An earthquake with 7.6 magnitude hit Japan on January 1 in the Noto region of Ishikawa prefecture on Honshu island and killed at least 30 people in collapsed buildings. The Japan Meteorological Agency issued a tsunami warning for the Noto Peninsula and the advisory covered the coastline of the Sea of Japan, though was later withdrawn as the danger passed.

   Japan’s Ministry of Economy, Trade and Industry (METI) then said in a statement that power generation had been affected in the region. “The earthquake closed two of Hokuriku Electric's coal-fired power plants, the No. 1 unit of 500 megawatts and the No. 2 unit of 700 MW at the Nanao-Ota thermal power plant. There was also reduced output at the 500 MW gas-fired Toyama-Shinko thermal power plant of 300 MW,” said the METI.

New Fortress Energy, the US developer of floating LNG production and import terminal and power projects, reported higher first-quarter revenues as “Fast LNG” projects advance along with regasification and power ventures in Brazil and Ireland.

The New York-based firm’s revenues jumped to $579.1M from $505.1M in the same three months of 2022 and were also up from the $546.4M logged in the previous quarter.

However, NFE’s net income dropped to $151.6M from $241.2M in the same three months of 2022.

The company explained that the construction of its first “Fast LNG” unit was 90 percent complete and deployment to Altamira on the Gulf Coast of Mexico was expected in the months ahead. 

NFE’s “Fast LNG” pairs modular, midsize liquefaction technology with jack-up rigs or similar floating infrastructure to enable lower-cost and faster deployment schedules.

“We expect to complete commissioning of our first ‘Fast LNG’ unit in the shipyard and on-location at the Altamira site and continue to anticipate first gas in July 2023,” said NFE.

The company noted that its FLNG 2 and FLNG 3 were already under construction and all long-lead items have been procured.

Brazil projects

NFE has also completed the Barcarena import terminal in Brazil and expects first gas deliveries to industrial customer Norsk Hydro in late 2023.

“We remain on schedule and also in 2023 expect to commence operations at our Santa Catarina terminal in Brazil,” NFE added.

NFE explained that construction of the 630 megawatts power plant at Barcarena is underway pursuant to a fixed-price, date-certain engineering, procurement and construction contract with Mitsubishi and Toyo Setal of Japan.

Operations at the plant are expected to commence in July 2025 pursuant to 25-year power purchase agreement with Brazilian distribution companies.

NFE is also selling a power plant in Mexico and was finalizing the sale of the 135-MW La Paz facility to Mexico’s Comisión Federal de Electricidad for around $180M. The transaction was expected to close in the third quarter.

The US company has also been awarded a 353 MW of capacity contract with a 10-year duration from the Single Electricity Market Operator (SEMO), the operator of the Republic of Ireland's electric grid.

NFE is also expecting to finalize a permitting and construction contract for a 600 MW combined-cycle, gas-fired power plant beginning operations in 2026 and to be supplied by a proposed Shannon LNG terminal project in Ballylongford in County Kerry, southwest Ireland.

Tokyo Gas, a leading liquefied natural gas importer and city-gas and power supplier, said Japan’s newest regasification facility, the Niihama LNG import terminal on Shikoku Island, has started operations.

The utility and four Japanese partners formed a joint venture to build and operate the Niihama LNG terminal with 1 million tonnes per annum of capacity at Sumitomo Chemical’s plant in Ehime Prefecture in Western Japan.

The facility, which is the 37th separate LNG import facility constructed in Japan has one LNG storage tank with a capacity of 230,000 cubic metres capacity and one jetty as well as truck-loading facilities.

The other partners are Sumitomo group members including Sumitomo Chemical and Sumitomo Electric Power, as well as Shikoku Electric Power and Shikoku Gas.

The project also includes the 150-megawatt Niihama gas-fired power plant.

“The joint venture company Niihama LNG has completed the construction and trial operations at the Sumitomo Chemical Ehime Plant in Niihama City in Ehime Prefecture and has begun supplying gas to the plant,” said Tokyo Gas.

“We also plan to start supplying gas to industries in neighbouring areas,” it added.

Subsidiary

Tokyo Gas Engineering Solutions, a subsidiary of Tokyo Gas, holds the company’s 50.1 percent share in the Niihama LNG venture.

Tokyo Gas, which imports around 13 MTPA of LNG, offered a corporate bond to investors, and which it called Japan’s first “energy transition bond”, to help finance the Niihama LNG venture.

Tokyo Gas explained that besides the Ehime plant, the new terminal will supply regasified LNG to the new 150 megawatts gas-fired Niihama Kita power plant.

“The Niihama Kita Thermal Power Station, scheduled to start operation in 2022 and being built by Sumitomo Electric Power, will also use LNG as fuel,” stated Tokyo Gas.

“Niihama LNG and jointly invested companies will contribute to the promotion of carbon neutrality through the spread and expansion of environmentally friendly natural gas and the stable and efficient use of energy,” Tokyo Gas concluded.