Japan's Kyushu Electric may invest in Lake Charles LNG project in US

KYUDEN Holdings

09/01/2024 07:25

TOKYO, Jan 9 (Reuters) - Kyushu Electric Power  9508.T 
is considering investing in the U.S. Lake Charles liquefied
natural gas (LNG) project of Energy Transfer  ET.N , among other
projects, to secure a stable supply of the fuel, a company
spokesperson said on Tuesday.
    The comment partially confirms a Sunday report by the Nikkei
business daily that Kyushu Electric may buy a stake of about 10%
in the Lake Charles project and sign a 20-year contract,
importing about 1.6 million metric tons a year on behalf of
other Japanese utilities.
    "It is true that we are considering the possibility of
taking on LNG from new U.S. LNG projects, including the Lake
Charles, as a potential source of future LNG procurement, as
well as making an equity participation," a Kyushu Electric
spokesperson said.
    But the utility declined to elaborate, saying that nothing
has been decided at the moment, and that there may be future
negotiations.
    The Nikkei said the Japanese government plans to support the
move through state-backed organisations such as the Japan Bank
for International Cooperation (JBIC) and the Japan Organization
for Metals and Energy Security (JOGMEC). 
    U.S. pipeline operator and LNG developer Energy Transfer in
August requested a new and expedited export license for its
proposed Lake Charles LNG plant, according to a filing with the
U.S. Department of Energy (DOE).
    The DOE in May had refused a three-year extension to Energy
Transfer's earlier license, saying the request did not meet the
criteria for a second extension.
    Energy Transfer has been pursuing the multibillion-dollar
Lake Charles LNG project since 2012. 
    The firm, controlled by billionaire Kelcy Warren, has
long-term agreements to supply 7.9 million metric tons per annum
(MTPA) of the proposed plant's 16.45 MTPA capacity.
    Japan was the world's biggest LNG importer in 2022, though
China was the top importer in the first half of 2023.    

 (Reporting by Yuka Obayashi. Editing by Gerry Doyle)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))