Sumitomo companies switch from coal to LNG for power generation

Members of the Japanese Sumitomo Group, Sumitomo Chemical and Sumitomo Metal Mining, intend on scaling down on use of coal and move to liquefied natural gas for power production. 

The two companies are looking to build an LNG receiving terminal as well as a gas-fired power plant at the site of Sumitomo Chemical’s factory in Niihama, the company’s statement reads.

The overall project cost is estimated at around 60 billion to 70 billion yen (US$541 million to $631 million).

The 150,000 kW power plant will be operated by Sumitomo Joint Electric Power through a new company which will be formed with Tokyo Gas and Shikoku Electric Power. The facility will also include the LNG tanker mooring as well as the liquefied natural gas storage tanks.

The design work on the facility, which is set to start operation in 2021 will be completed by Tokyo Gas’ unit, Tokyo Gas Engineering Solutions.

Once in operation, the facility will provide electricity to nearby Sumitomo group companies, with the operator, Sumitomo Joint Electric Power shutting down the coal-fired power plant.

1 JPY = 0.00901526 USD

LNG World News Staff