Key Point of President's Regular Press Conference
Key Point of President's Regular Press Conference
Regular Press Conference for September 2010
September 22, 2010
Chubu Electric Power Co.,Inc.
Today, I will be discussing two points:
- Chubu Electric's plan for the development of a mega-solar power station in Shimizu Ward, Shizuoka City
- Our decision to purchase LNG produced by the Donggi-Senoro Project
Plan for the Development of a Mega-solar Power Station in Shimizu Ward, Shizuoka City
- First, I will discuss our plan to develop a mega-solar power station in Shimizu Ward, Shizuoka City.
- Chubu Electric today decided to construct a mega-solar power station on land owned by the company in Shimizu Ward, Shizuoka City.
- Together with Mega Solar Taketoyo, in Taketoyo-cho, Aichi Prefecture, and Mega Solar Iida, in Iida City, Nagano Prefecture, this new development will represent the third of our mega-solar power stations.
- We intend to construct an 8 MW power station to be called "Mega Solar Shimizu" on land owned by our company in Shizuoka City's Shimizu Ward, for commencement of operation in FY2014.
- The 8 MW planned in the new development will make this the largest of Chubu Electric's mega-solar power stations.
- The projected annual output of the new station will be approximately 8,400 MW, equivalent to the power used per year by approximately 2,300 normal households.
- In addition, like nuclear power and hydroelectric power, solar power does not result in any CO2 emissions in the generation process. Because of this, the new plan is expected to reduce CO2 emissions by approximately 4,000 metric tons per year.
- In the future, we will work together with Shizuoka City to win the understanding and cooperation of local residents. In addition, we will consult with all entities involved in the plan, commencing with Shizuoka Prefecture, at the same time we provide explanations and guidance.
- We will consider other new mega-solar projects, based on the future status of solar electricity, trends in the price of solar panels, subsidy systems (grants, etc.) and the status of our technological studies in the mega-solar projects.
- Chubu Electric will continue to work actively to develop and introduce solar, wind, and other forms of renewable energy. At the same time, we will proceed with nuclear generation and promote the development of high-efficiency LNG thermal generation, working as a group to contribute to the realization of a low-carbon society.
Chubu Electric's Decision to Purchase LNG produced by the Donggi-Senoro LNG Project
- Next, I would like to discuss Chubu Electric's decision to purchase LNG produced by the Donggi-Senoro LNG Project.
- Chubu Electric today decided, together with PT Donggi-Senoro LNG, to purchase liquefied natural gas produced by the Donggi-Senoro LNG Project.
- We intend to purchase approximately one million metric tons of LNG per year from PT Donggi-Senoro for a period of approximately 13 years from the second half of 2014.
- The Donggi-Senoro LNG Project is a project for the liquefaction and marketing of natural gas produced from gas fields located in the eastern part of Sulawesi, Indonesia. Reserves of gas equivalent to approximately 46 million metric tons of LNG have been confirmed in these fields, and the project plans to produce approximately 2 million metric tons per year.
- PT Donggi-Senoro LNG, the company that will liquefy and market the natural gas produced by this project, was funded and established by Mitsubishi Corporation; PT Pertamina, Indonesia's state oil and gas company, and PT Medco Energi Internasional, a private sector Indonesian gas exploration and development company.
- The ability to stably procure LNG via a long-term contract from a new project in Indonesia, a nation both rich in resources and geographically close, is highly favorable from the perspective of energy security, and we believe that it will contribute to increasing the stability of power supply to our customers.
- In addition, Chubu Electric has also decided to establish a marketing company in collaboration with Mitsubishi Corporation, PT Pertamina, and PT Medco Energi Internasional.
- This marketing company will be established in order to market some of the LNG that we purchase from PT Donggi-Senoro LNG to third parties. We believe that we will be able to utilize this company to adjust the amount of LNG that we procure when factors such as changes in supply and demand cause us to experience a shortfall or an excess of LNG.
- This will represent the first time that Chubu Electric has established an LNG marketing company. We believe that its establishment will further increase our procurement flexibility in the LNG field. In addition, we feel that the expansion of our corporate activities in this new process will contribute to the development of new energy businesses in our fuel procurement value chain.
- We will continue in future to enhance our fuel value chain in order to ensure the stability and increase the economy of our fuel procurement, and to ensure the flexibility to respond to changes in supply and demand. In addition, we will proceed with a variety of initiatives in the area of fuel procurement, including diversifying our sources, combining a range of different contract periods, and ensuring flexibility in our LNG procurement contracts.
- We will continue to work to fulfill our mission for the public good, responding to the trust our customers have in us by providing a stable supply of safe, low-cost and environmentally-friendly power, to support people's daily lives and the development of the region.
That concludes my remarks for today.