Tokyo Gas plans LNG supply to Southeast Asian islands

Tokyo Gas is commencing a project to supply LNG (liquefied natural gas) to remote island nations of Southeast Asia, with the installation of LNG storage units. The Japanese company has already started a feasibility study in the Philippines.

In particular, the idea includes establishment of small LNG storage and power generation facilities in each island and commissioning of small LNG vessels that will make rounds approximately once a week, providing electricity to local homes and offices.

Japan’s Ministry of Economy, Trade and Industry, will support Tokyo Gas, to study the commercial viability of the project through next spring.

The capital investment for each island is estimated at tens of millions of dollars, according to Nikkei.

As the region is significantly energy-hungry, several LNG plans are underway, specifically in the Philippines, Indonesia and Vietnam.

Tokyo Gas plans to start the LNG distribution by the time the construction of large barge terminals in the Philippines is completed. The company plans to bring the business to other countries across Southeast Asia, as well.

The International Energy Agency expects a rise on the demand for LNG up to 2% per annum in Southeast Asia through 2040.