Cosmo Energy considers LNG power plant amid rising demand

While specific project frameworks are undecided, the company unveiled these considerations on June 18. The plan involves developing renewable energy capacity, including wind and solar, with LNG-fired generation intended to balance the intermittent nature of renewables. Cosmo aims to increase its renewable capacity to 490MW by the fiscal year 2028-29, up from 364MW in 2025-26, and boost power sales by 35% to 3.1 TWh over the same period.

The company stated that power sources must balance economic viability with decarbonisation goals, not being limited solely to green energy. Beyond power generation, Cosmo is also looking to expand its upstream exposure to natural gas, moving beyond its traditional crude oil business. Potential locations for this expansion, including the UAE where Cosmo plans to increase oil production, are still under consideration.

It remains uncertain if Cosmo will venture into liquefaction and LNG trading. In a related development, fellow energy firm Idemitsu decided in March to invest in MidOcean Energy, an LNG company backed by US investment firm EIG, which includes the possibility of engaging in LNG trading.