Japan’s JGC chosen by Sumitomo Chemical for key domestic LNG-for-power project in Ichihara

Tuesday, 15 December 2020
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LNG News Editor: 

JGC Corp. of Japan, one of the leading global LNG engineering companies with contracts at LNG Canada in British Columbia and hopeful of new contracts in Qatar and Oman, has been awarded a key domestic Japanese contract for an LNG-for-power project.

The company, based in Yokohama, has been an industry leader in the construction of LNG production plants in countries such as Australia, Malaysia, Qatar and Russia.


Now JGC Japan Corp., which operates the domestic engineering, procurement, and construction (EPC) business of the JGC Group, said it received an order for EPC and commissioning work for a high-efficiency gas turbine power generation facility at Sumitomo Chemical’s Chiba Works in Ichihara City in Chiba Prefecture.

“This project involves decommissioning the petroleum coke power generation facility currently operating at Sumitomo Chemical's Chiba Works and constructing a high-efficiency gas turbine power generation facility fueled by liquefied natural gas,” explained JGC Japan.

“The LNG-fired plant, which will have a low carbon-dioxide emissions coefficient, is part of Sumitomo Chemical's efforts to reduce emissions of greenhouse gases,” said JGC.

“By introducing this facility, Sumitomo Chemical plans to reduce CO2 emissions at Chiba Works by 240,000 tons or more a year, equivalent to approximately 20 percent of the plant's total annual CO2 emissions,” added JGC.

The company said it was aiming to contribute to realizing a sustainable society by contributing to curbing CO2 emissions.

“This will be through focusing on constructing LNG plants and thermal power plants fueled by LNG, which among fossil fuels has a low CO2 emissions coefficient, as well as renewable energy plants such as photovoltaic and biomass power plants,” it stated.

JGC said that it believed it was chosen by Sumitomo Chemical because of its overseas reputation in the LNG and gas power sector.

“The selection as the contractor for this project is believed to reflect the client's overall positive evaluation of the Group's excellent engineering technologies, its rich track record of constructing gas turbine power generation facilities overseas, and its ability to provide flexible proposals,” added JGC.

The scope of the EPCC contract is for a high-efficiency gas turbine power generation facility (output: 45,000kW or more) and a heat recovery steam generator (vapor: 80 tons/h or more),” it added.

The company said in its most recent earnings that its outstanding LNG contracts in progress amounted to 555.5Bln yen ($5.28Bln), including LNG Canada for Royal Dutch Shell and its Asian partners.

JGC’s joint venture engineering partner for LNG Canada is Fluor Corp of the US.

The company’s other ongoing project is the Coral Floating LNG contract offshore Mozambique for Italian energy company Eni.

JGC said it was still hopeful for contract awards in the months ahead for the Qatar LNG expansion and the LNG bunkering project in the Sultanate of Oman in the Arabian Peninsula.

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