Tokyo - KUNA
Japan's biggest oil distributor JX Nippon Oil Energy Corp. is considering tripling its power generation capacity from the current level to 4 million kilowatts by 2030, Kyodo News Agency reported Thursday. If realized, JX Nippon Oil will become the nation's largest power generator outside the power industry to rival Tokyo Gas Co., which is seeking to raise its power generation capacity to between 3 million and 5 million kw in fiscal 2020, it said. As retail salesa of electric power for home use are expected to be liberalized around 2016 under the government's power system reform, competition in power generation and retailing is expected to intensify between conventional electric power firms and newcomers from other industries. In view of the move, JX Nippon Oil will set up a task force on the power business in April to draw up its business strategy, according to the report. Amid decreasing demand for gasoline, the company is selling electricity generated by using liquefied natural gas and oil left over from oil refining. It now has a power generation capacity of about 1.4 million kw. JX Nippon Oil also plans to expand Kawasaki Natural Gas Power Generation and build a large thermal power plant, both located near Tokyo, the report added.