LNG

Sept 5 (LNGJ) - Japanese utility Saibu Gas Co., operator of the Hibiki terminal with Kyushu Electric, and a second facility in Nagasaki, has signed a heads of agreement on supplies with Novatek of Russia. “The creation of our joint venture with Saibu Gas allows us to increase the marketing flexibility of natural gas supplies and create additional opportunities for LNG sales in this important gas consuming region,” said Novatek.

   Saibu and Novatek said they planned to establish a joint venture focused on marketing LNG and natural gas to end-users and to develop bunkering activities as well as constructing and operating a new LNG storage tank at the Hibiki terminal where there are currently just two tanks.

Japan’s Saibu Gas has called off plans to start construction of an LNG-fired power plant, saying the 1,600 MW project was “postponed” – some observers say indefinitely. The decision was made after Kyushu Electric hesitated to sign a power purchase agreement.