JERA Co., Inc. and Saibu Gas Co., Ltd. have signed an agreement to collaborate on the strategic use of the Hibiki LNG Terminal, a move aimed at reinforcing the stable procurement of liquefied natural gas (LNG) and advancing their global business development initiatives.

The collaboration marks a significant step in the long-standing relationship between the two companies, who have explored opportunities in the past to enhance Japan’s energy security through the stable supply of LNG. Recognizing the increasing complexity of global energy markets and the need for resilient infrastructure, the companies have decided to take concrete steps toward a shared strategy at the Hibiki facility.

In November 2024, Saibu Gas announced plans to expand the Hibiki LNG Terminal to better serve domestic natural gas demand and improve supply reliability. A key component of the expansion is the construction of a third LNG storage tank. This development created an opportunity for deeper cooperation between Saibu Gas and JERA, culminating in the recent agreement.

Under the terms of the collaboration, JERA will gain access to the third LNG tank. This additional capacity is expected to improve JERA’s operational flexibility, particularly in addressing supply-demand imbalances in Japan’s power grid. As the country increases its reliance on renewable energy sources, electricity supply and demand are becoming more volatile. Seasonal shifts in power consumption further compound the challenge. Access to expanded LNG storage will allow JERA to respond more effectively to these fluctuations.

For Saibu Gas, the third tank enhances its ability to secure supply while also capturing growing demand. The joint use of the facility with JERA will enable reciprocal LNG sharing between the companies, supporting both operational stability and economic efficiency. It also ensures the long-term viability and profitability of the Hibiki LNG Terminal.

Additionally, both companies intend to leverage the terminal’s advantageous location in northern Kyushu to pursue business development opportunities throughout Asia and beyond. With global energy demand continuing to shift, the Hibiki terminal could serve as a key logistical hub for international LNG distribution.

Looking ahead, JERA and Saibu Gas plan to explore further collaboration in the broader energy space, including research and development into next-generation fuels such as hydrogen. These initiatives align with their shared commitment to decarbonization and sustainable energy solutions.

Through this partnership, JERA and Saibu Gas aim to contribute meaningfully to the stability of Japan’s energy supply, support Asia’s energy transition, and help address global energy challenges. The agreement underscores their dedication to innovation, resilience, and long-term environmental responsibility.