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Middle and Downstream Business

Business Overview and Characteristics

In middle and downstream businesses, we aim to grow sustainably by utilizing the know-how and experience cultivated in the Domestic Energy Business and amassed expertise in the region to improve the business value of each project and operate the business independently. The Group participates in LNG terminal and IPP businesses and other business in North America, Europe, the Middle East, and Australia. We are also engaged in natural gas sales and energy services in Southeast Asia and would like to expand into projects such as power plants and LNG terminals. We will continue to make use of business expertise amassed in the region to proactively develop our businesses.

Status of Investments

Participating in Electricity Business in USA

In USA, an environment-friendly natural gas-fired power plant is expected as demand for stable power supply is increasing due to the decommission of aging coal-fired power plants and the expansion of renewable energy sources. Since participating in North American natural gas thermal power plant projects in 2004, we have acquired projects, mainly in the US northeast including the PJM Market, one of the largest wholesale power markets in USA. In addition to expanding profit contributions, we have accumulated expertise on power plant operations, including fuel procurement and sakes of electric power to the market. In recent years, we took a 100% stake in Michigan Power’s natural gas-fired power plant in 2018 and have taken other measures to accelerate the accumulation of business expertise by promoting more independent power plant operations, and we are making further efforts to achieve sustainable growth in the IPP business in North America by applying our accumulated business expertise to the operation of the Fairview natural gas-fired thermal power plant, which launched commercial operations in 2019. In addition, we have invested in SolAmerica Energy, LLC, a distributed solar energy project developer and Engineering, Procurement & Construction firm in 2020. We are proactively explor ing other investment opportunities in renewable energy sources, which are expected to expand in USA.

Michigan Power natural gas-fired thermal power plant in USA

Michigan Power natural gas-fired thermal power plant in USA

Fairview natural gas-fired thermal power plant in USA

Fairview natural gas-fired thermal power plant in USA

Solar power plant developed and constructed by SolAmerica Energy, LLC in USA Courtesy of SolAmerica Energy, LLC

Solar power plant developed and constructed by SolAmerica Energy, LLC in USA Courtesy of SolAmerica Energy, LLC

Launch of commercial operation of Freeport LNG Project

In the liquefaction business at the Freeport LNG Project in Texas, USA, commercial operation of the train 1 has been launched in 2019. Commercial operation of the train 2 and 3 trains has been sequentially started in 2020. In addition to expanding stable profit contribution through the liquefaction business, we are starting LNG procurement from the USA to secure LNG without restrictions on the country of destination, and at the same time, promoting diversification of our supply sources and our LNG price indexation to achieve stable and flexible LNG procurement.


Business Development in Southeast Asia

In 2013 we set up a local representative company in Singapore and Thailand, and in 2018 we also set up a local company in Indonesia, to start selling natural gas and provide energy services. We are accelerating business development, such as the establishment of a natural gas supply company in Vietnam and a solar power generation company in Thailand in 2019, and investment and conclusion of a strategic collaboration agreement with AGP International Holdings Pte. Ltd. which develops natural gas infrastructure overseas. We will be expanding our International Energy Business by promoting business activities corresponding to local needs, particularly in Southeast Asia, where the demand for natural gas is expected to grow.

Artist’s impression of completed Phu My 3 Specialized Industrial Park in Vietnam

Artist’s impression of completed Phu My 3 Specialized Industrial Park in Vietnam