LNG

JERA Co. Inc., the largest Japanese utility and liquefied natural gas importer, has decided to acquire a 27 percent stake in Aboitiz Power Corp. for $1.58 billion to partner with the major utility in the Philippines as the Asian nation builds out LNG and gas-fired power projects.

Tokyo Gas and JERA Co. Inc., the leading Japanese utilities and LNG importers, have sold their combined 50 percent stake in a Mexican-based company operating five gas-fired power plants, including one close to the Gulf Of Mexico LNG import terminal at Altamira.

The Mexican company MT Falcon Holdings owns five natural gas combined-cycle power plants (CCPPs) in northeast Mexico and Tokyo Gas and JERA have sold their respective 30 percent and 20 percent stakes.

Each power plant has had long-term power purchasing agreement with Mexico’s state-owned Federal Electricity Commission.

Both Tokyo Gas and JERA have entered into sale and purchase agreements with Actis GP LLP, a London-based private equity firm with investments in global energy infrastructure.

The sales are expected to be completed by the end of March 2022 and are subject to certain approvals from Mexican government authorities.

“Tokyo Gas will enhance business expansion also in the global business such as renewable energy, gas and power supply, LNG infrastructure development, and contribute to the society through corporate growth with the experience and knowledge acquired from MT Falcon,” explained the Tokyo utility, which is aiming for more Asian investments.

The five MT Falcon plants have total generating capacity of 2,233 megawatts of power.

The value of the transactions with Actis were not disclosed, though the Japanese utilities seemed pleased with their sell-offs.

The power plant near the Mexican LNG import terminal at Altamira is a facility with 495 MW of capacity.

Three of the other plants are at Rio Bravo and the fourth is at Saltillo.

JERA also indicated that it preferred its investment portfolio to show more growth in Asia than in the Americas.

“JERA will continue to renew its portfolio going forward, selling assets and reinvesting the proceeds as it optimizes its asset allocation for compatibility with a changing business environment,” said JERA.

The company is the largest Japanese LNG buyer with 35 million tonnes per annum of volumes and controls a fleet of 20 LNG carriers.

JERA is Japan’s biggest fossil-fuel generator being owned jointly by Tokyo Electric Power Co. and Chubu Electric, the two largest power companies.

The joint venture company currently operates and provides fuel for a total of 26 power plants in Japan and imports LNG into 11 of Japan’s network of 37 terminals.

The Tokyo Gas LNG portfolio currently amounts to around 14 MTPA and the utility controls a fleet of 10 ships to deliver to its four import terminals, three around Tokyo Bay and one at Hitachi in Ibaraki Prefecture.