Wedoany.com Report-Aug. 11, Chiyoda Corporation, a Japanese engineering firm, has secured an engineering, procurement, and construction (EPC) contract from Saibu Gas for the expansion of the Hibiki LNG terminal near Kitakyushu, Japan. The project involves the construction of a third liquefied natural gas (LNG) storage tank at the facility.

The groundbreaking ceremony for the new tank was held on July 18, 2025. The project is scheduled for completion in the first half of fiscal year 2029. This new tank will join the two existing tanks at the terminal, which each have a storage capacity of 180,000 cubic meters (cbm). The third tank is designed with a larger capacity of 230,000 cbm.

Saibu Gas made the decision to expand the Hibiki LNG terminal in November 2024. The move aims to meet domestic demand for natural gas, strengthen the stability of the energy supply, and support the company’s international business operations.

In April 2025, Saibu Gas signed an agreement with JERA for reciprocal LNG sharing using the new tank. The partnership intends to manage supply and demand more effectively at both companies’ terminals. The collaboration addresses increasing fluctuations in Japan’s electricity supply-demand balance due to seasonal variations and the broader integration of renewable energy sources.

JERA, a major energy company in Japan, continues to explore ways to enhance national energy security. As part of its broader strategy, JERA recently signed a long-term agreement with Cheniere Energy. Under this deal, Cheniere will supply 1 million tonnes per annum (mtpa) of LNG to Japan over a 20-year period.

The Hibiki terminal expansion, along with strategic partnerships like the one with JERA, underscores Japan’s ongoing efforts to ensure stable energy supplies while adapting to evolving energy demands and environmental targets. The project also reflects continued investment in LNG infrastructure as a key element in the country’s energy strategy.