The logo of JERA Co., Inc., the world's biggest LNG buyer, is displayed at the company office in Tokyo, Japan July 14, 2017.
Saibu Gas, operating on Japan’s southern island of Kyushu, decided in November 2024 to expand the Hibiki Terminal’s capacity by constructing a third LNG storage tank with a capacity of 230,000 kilolitres. The new tank, expected to be operational in 2029, will be accessible to JERA, Japan’s leading power generator. This arrangement will allow JERA to better manage fluctuations in supply and demand, driven by the growing use of renewable energy and seasonal variations in consumption.
For Saibu Gas, sharing the new tank will improve the terminal’s profitability and generate lease income, though financial details were not disclosed due to confidentiality. Saibu Gas President Takuji Kato stated: “The partnership with JERA is a major step forward not only for improving the efficiency of the Hibiki Terminal, but also for advancing our overall energy business.”
The collaboration also positions both companies to leverage the terminal’s strategic location to expand their operations across Asia and globally. They plan to explore next-generation fuels, such as hydrogen, to align with evolving energy trends. JERA’s Senior Vice President Naoto Tanaka noted: “In future, joint LNG procurement could be considered.”
JERA currently operates eight LNG receiving terminals with a combined storage capacity of 6.57 million kilolitres, while Saibu Gas manages the Hibiki Terminal with 360,000 kilolitres of storage. The agreement enhances the terminal’s role in addressing Japan’s energy needs while supporting the companies’ ambitions to strengthen their presence in the global energy market.
This partnership reflects a broader effort to optimize LNG infrastructure and adapt to changing energy demands, with a focus on efficiency and innovation. The Hibiki Terminal’s expansion and shared use are expected to contribute to a more flexible and sustainable energy supply chain in Japan.
