Key facts
- Cosmo Energy is considering building a gas-fired power plant.
- The plan is part of the company's business strategy through 2035.
Japanese energy firm Cosmo Energy is considering building a gas-fired power plant as part of its business plan to 2035, aiming to balance renewable energy capacity with the need for reliable power sources.
Cosmo Energy's consideration of an LNG power plant highlights the ongoing challenge for energy companies to balance decarbonisation goals with the need for reliable and economically viable energy sources, especially in a market anticipating rising demand.
Japanese energy firm Cosmo Energy is considering the construction of a liquefied natural gas (LNG)-fired power plant as part of its strategic business plan extending to 2035. This move comes amid projections of continued rising domestic electricity 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.
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