Japan Petroleum Exploration Co said on Friday it would build a new liquefied natural gas (LNG) receiving terminal in Hokkaido, northern Japan, for around 5-6 billion yen ($58-$70 million) to meet projected growth in winter demand, especially from the industrial sector.
The company will start construction of the terminal, which wil include such facilities as a 3,000-kilolitres-class LNG tank in Tomakomai, in June 2010 with completion set for the autumn of 2011. The first domestic vessel is scheduled to arrive at the terminal in November 2011.
The move will help diversify the sources of the gas that the company sells to local gas providers in Hokkaido. The firm's current supply to Hokkaido is limited to gas produced at the company's Yufutsu gas field in Tomakomai.
Hokkaido's peak gas demand in winter is roughly twice that of the summer, a company spokesman said. Although production from the Yufutsu field has grown over the years, the company said it had decided to build the terminal amid expectations of higher demand for clean energy from the industrial sector.
The company will start construction of the terminal, which wil include such facilities as a 3,000-kilolitres-class LNG tank in Tomakomai, in June 2010 with completion set for the autumn of 2011. The first domestic vessel is scheduled to arrive at the terminal in November 2011.
The move will help diversify the sources of the gas that the company sells to local gas providers in Hokkaido. The firm's current supply to Hokkaido is limited to gas produced at the company's Yufutsu gas field in Tomakomai.
Hokkaido's peak gas demand in winter is roughly twice that of the summer, a company spokesman said. Although production from the Yufutsu field has grown over the years, the company said it had decided to build the terminal amid expectations of higher demand for clean energy from the industrial sector.