ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Business

Tepco, JXTG to partner on power plant, city gas

Japanese energy companies venturing beyond bailiwicks as markets open up

TOKYO -- Tokyo Electric Power Co. Holdings and JXTG Holdings will team up to build a power plant and production facilities for city gas, using each other's expertise to more effectively tap markets outside their traditional turf.

Japan's top electricity provider and oil company, respectively, will build a natural-gas-fired power plant in the city of Kawasaki. They aim to bring the 1.3-million-kilowatt facility online around 2024.

A 50-50 joint venture will be set up as early as October for the roughly 120 billion yen ($1.08 billion) project. By working with JXTG, Tepco seeks to build a cost-competitive plant with cutting-edge technology while limiting its financial burden.

For JXTG, having more power plants of its own will help the energy giant further expand its presence in the retail electricity market, which was opened up to new players last year. The company already operates an 850,000kW gas-fired plant in Kawasaki with Tokyo Gas, but decided in July not to boost its capacity to 2 million kilowatts by 2021 as previously planned.

Tepco and JXTG will also jointly build facilities to process liquefied natural gas into city gas. The two companies will form a separate joint venture for this project. The facilities are expected to begin operating around 2020.

Japan liberalized its retail city gas market in April. Tokyo Gas still holds a near-monopoly in the greater Tokyo area.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media