Japan’s biggest city gas seller Tokyo Gas Co. Ltd. will boost the overseas expansions of renewable energy and liquefied natural gas (LNG) to triple its overseas profit by 2030 which will bring a 67% rise in the total operating profit.
The company targets renewables to generate 40% of overseas profits of around JPY40 billion (USD368 million) by 2030. Tokyo Gas’ only renewable assets are in Mexico consisted of solar and onshore wind power with a generation capacity of 490,000 kW. The company plans to raise its global renewable assets tenfold to 5 million kW by 2030.
Regarding LNG, Tokyo Gas is planning to up its upstream assets and infrastructure projects in Southeast Asia. The company is in the final discussion with First Gen Corp. to build an LNG terminal in the Philippines. It also targets to increase LNG trading to 5 million tons by 2030 from practically zero at the moment, to generate JPY10 billion (USD92 million) of profit.
Tokyo Gas President Takashi Uchida said that the company would announce a deal soon, as an effort to raise its stake in an existing LNG upstream project. “We are not seeking profits from financial trading and all of our trades will be linked with physical supplies,” Uchida said.
Uchida added that Tokyo Gas’ main activities in this area would be swapping cargoes with overseas partners or making seasonal swaps with other utilities. At the moment, it has a trading desk with two staff in Singapore but may hire more traders.
