Japan Petroleum Exploration Co., Ltd. (JAPEX) has announced that Fukushima Gas Power Co., Ltd. (FGP) has signed a contract for a US$1.27-billion syndicated loan with Development Bank of Japan Inc. as the lead arranger on the 1,180 MW Natural Gas-fired Power Generation Project at Soma Port in Shinchi Town, Fukushima Prefecture.
As we reported, in October 2016, was approved the participation of new shareholders,in addition to JAPEX and Mitsui. These new shareholders were Osaka Gas Co., Ltd., Mitsubishi Gas Chemical Co., Inc., and Hokkaido Electric Power Co., Inc.
The outline of this contract is as follows:
FGP has evaluated the overall condition to promote the project in view of its finance aspect such as prospects of cash flow after the commencement of the power plant and current market situation of low-interest rate. Eventually, FGP made a conclusion that it would be the most suitable for the project to utilize project finance of nonrecourse loan type to repay using their business revenue.
The power plant will have two power generation GTCC (Gas Turbine Combined-Cycle) units which can generate 590 thousands kilowatts. In addition, FGP plans to construct a new aboveground type LNG storage tank which can store 230 thousand kiloliters and LNG vaporization equipment on the site of JAPEX’s Soma LNG Terminal, which is under construction at FGP’s neighboring plant site.