The Japan News: TEPCO, Chubu Electric mull tie-up for LNG procurement

Tokyo Electric Power Co. (TEPCO) will likely form a new joint company with Chubu Electric Power Co. to reinforce its thermal power plant operations as a pillar of its business recovery efforts. If the proposed deal goes through, the team would become the world’s largest buyer of liquefied natural gas.

TEPCO hopes to reach a basic agreement with Chubu Electric by the end of September, and plans to establish a new company jointly capitalized by the two utilities by the end of March next year.

Given that regional monopolies of electric power companies are under review and the government is pushing liberalization of the electric power industry to encourage competition, TEPCO intends to gain an edge by minimizing utility bills.

The proposed tie-up could also lead to further realignment of the industry. MORE