Japan Petroleum Exploration (Japex) has started the construction of an LNG terminal in Shinchi Town, Fukushima Prefecture (Soma Port), Japan which will receive imports from Canada under a 10% interest agreement.
The company is also preparing to construct a connecting pipeline to convey vapourised LNG gas from the terminal to its main trunk pipeline.
Japex supplies natural gas produced domestically in Niigata, Yamagata and Akita prefectures, as well as vapourised LNG gas received from overseas, to users in the production areas and to those in other areas through its pipeline network, which includes the Niigata-Sendai Pipeline and Shiroishi-Koriyama Pipeline. The company also supplies LNG in liquid form to users through LNG satellite stations utilising freight containers and tank trucks.
The Soma LNG receiving terminal will store and vapourise LNG to be offloaded from large ocean-going LNG tankers docked at Soma Port, and the construction of the new 40km pipeline to transfer vaporised LNG gas from the terminal to JAPEX’s Niigata-Sendai Pipeline (connecting at the Iwanuma Valve Station in Iwanuma City, Miyagi Prefecture).
Around 60 billion yen (€409.3 million) has been invested in the project, which will include one 230,000kl aboveground LNG tank, a berth for receiving large ocean-going LNG tankers, LNG domestic vessel shipping and receiving berth, two LNG vapourisers, gas heat capacity value control facilities for vaporised gas, LNG tank truck loading facilities, and other facilities.
Japex has acquired a 10% interest in a natural gas development and production project in British Columbia, Canada, and a 10% interest in the Canada Pacific 2/4 NorthWest LNG Project, in which natural gas is transported to the Port of Prince Rupert on the western coast of Canada through pipeline and is liquefied and exported as LNG. This includes the right to offtake 10% of the LNG.
The project partners are working toward beginning operation at the liquefaction plant by the end of 2018. Under this project, Japex will offtake 10% (1.2 million tonnes) of the LNG at the plant (about 12 million tons per annum) and use it as one of the LNG sources to be received at the Soma terminal, which will be put into operation in March 2018.