Chiyoda Corporation Wins EPC Contract for Additional LNG Tank at Saibu Gas Facility

Japanese engineering company Chiyoda Corporation has secured an engineering, procurement, and construction (EPC) contract with Saibu Gas to install a third LNG tank at the Hibiki LNG terminal near Kitakyushu, Japan.

The groundbreaking ceremony for the project took place on July 18, 2025, with an expected completion date in the first half of fiscal year 2029. This expansion comes in response to the growing demand for natural gas in Japan and aims to enhance supply stability and support Saibu Gas’s global business initiatives.

Currently, the Hibiki LNG terminal operates with two tanks, each with a storage capacity of 180,000 cubic meters. The addition of the third tank will increase the total capacity to 230,000 cubic meters, providing greater flexibility in managing LNG supplies.

Furthermore, Chiyoda Corporation recently entered into an agreement with JERA for reciprocal LNG sharing using the new tank. This collaboration aims to address the evolving electricity supply-demand dynamics in Japan, driven by renewable energy adoption and seasonal variations in energy consumption.

As part of its efforts to bolster energy security, JERA also signed a long-term LNG supply deal with Cheniere Energy. This agreement will see Cheniere deliver 1 million tonnes of LNG annually to Japan over a 20-year period, contributing to the diversification of energy sources in the country.