June 28, 2019 / 9:10 AM / 2 months ago

Jera, JXTG sign EPC contract with Toshiba units for Goi power plant

TOKYO, June 28 (Reuters) - Japan’s Jera Co Inc and JXTG Nippon Oil & Energy Corp said on Friday they had signed a contract with two units of Toshiba Corp for construction of 2.34 gigawatt (GW) power generation facilities at the Goi thermal power station in eastern Japan.

Under the agreement, Toshiba Energy Systems & Solution Corp and Toshiba Plant System & Services Corp will handle engineering, procurement and construction, said a Jera spokesman, declining to disclose the term.

Jera, a joint venture between Tokyo Electric Power Company Holdings Inc and Chubu Electric Power Co Inc, and JXTG Nippon Oil, a unit of JXTG Holdings Inc, plan to build three liquefied natural gas (LNG)-fired thermal power plant of 780 megawatt each, with an aim to start operation in 2024-2025.

The new plant, which is to replace Jera’s gas-fired power plant, will use General Electric Co’s 9HA.02 gas turbines and aims to achieve thermal efficiency of 64%, the Jera spokesman said.

Jera declined to give an estimated construction cost, but it is expected to exceed 200 billion yen ($1.86 billion), according to an industry source.

$1 = 107.6200 yen Reporting by Yuka Obayashi; Editing by Subhranshu Sahu

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