Kawasaki and JFE Engineering pick up work on Japanese LNG project

March 26, 2026, by Melisa Cavcic

A joint venture, formed by Tokyo-headquartered Kawasaki Heavy Industries and JFE Engineering, has landed a new job at a liquefied natural gas (LNG) terminal in Sakaide, Kagawa Prefecture, Japan.

The LNG Tank Expansion Construction joint venture for the Sakaide LNG terminal has been awarded the contract for the LNG tank and other expansion works for the LNG terminal in Japan by Kagawa-based Sakaide LNG Company. The project is interpreted to support the country’s energy transition.

With the demand for natural gas expected to grow due to the planned construction of the Sakaide No.5 power plant by Shikoku Electric Power and conversion to LNG fuel at factories and other consumers, Sakaide LNG aims to increase storage capacity, create a more flexible LNG receiving system, and boost its gas supply setup.

With the planned start of operation in 2031, a 180,000 kiloliter (kL) above-ground PC LNG tank and supply facilities, including LNG vaporizers, will be added to the Sakaide LNG terminal’s premises. While Kawasaki will build the LNG tank, JFE Engineering will take care of the plant facility and civil engineering and construction work.

The former has constructed over 70 cryogenic tanks in Japan and overseas, while the latter has handled the construction and expansion of LNG receiving terminals in Japan. Kawasaki and JFE Engineering intend to continue to support energy transition for the early realization of a carbon neutral society.

Sakaide LNG Company is owned by Shikoku Power (70%), Cosmo Oil (20%), and Shikokugas (10%). The planned construction site is Bannosumidoricho, Sakaide-shi, Kagawa. The Sakaide LNG terminal boasts a storage capacity of 180,000 cubic meters (cbm) and an annual throughput capacity of 1.2 mmtpa.

The terminal received its first commissioning cargo in January 2010, with commercial operations starting in March 2010. Kawasaki Heavy Industries served as the sole contractor for the project, handling all works from engineering to procurement, construction, and subcontracting.