Tepco, Chubu Electric agree thermal power business integration
Tepco Fuel & Power, a Tepco unit, and Chubu Electric Power have concluded a joint venture deal to integrate their existing thermal power generation businesses into JERA.
The two companies are looking to integrate their fuel receiving/storage and gas transportation businesses, in addition to their existing thermal power generation business.
According to a joint statement, following detailed studies and discussions since the end of March, the two companies concluded a joint-venture agreement after having agreed on the basic business model framework that is to follow the integration, as well as detailed rules on steps that would enable JERA to engage in unconstrained business activities.
Following the integration, JERA, the largest importer of liquefied natural gas, plans to strengthen the competitiveness of domestic power generation business.
Aiming to integrate their businesses in the first half of FY 2019, the two companies will engage in detailed studies and carry forward the required procedures.
In addition, Tepco aims to fully revitalize the Fukushima power plant through the integration.