JX Nippon Oil & Energy Corp., Japan's largest oil supplier, may sell electricity to embattled Tokyo Electric Power Co. while discussing possible purchases of the utility's power plants, the JX president said.
JX Nippon Oil & Energy Corp., Japan's largest oil supplier, may sell electricity to embattled Tokyo Electric Power Co. while discussing possible purchases of the utility's power plants, the JX president said.
Yasushi Kimura also told The Asahi Shimbun on Dec. 19 that his company would be able to continue oil deliveries amid tightened U.S. sanctions against Iran by procuring oil from Saudi Arabia and other nations.
Struggling to stay afloat amid mounting compensation claims for damage from the Fukushima No. 1 nuclear power plant accident, TEPCO has said it will abandon its long-standing policy of relying solely on electricity from its own plants and gradually increase electricity purchases from other suppliers to meet demand.
TEPCO is also considering selling off some of its power plants.
"(The current situation) offers tremendous business growth potential," Kimura said. "We are leaving all possible options open, including building and buying power plants."
JX, which already has power generation facilities capable of producing 1.3 gigawatts, intends to increase output.
Japan is coming under increasing international pressure not to buy oil from Iran, which accounts for about 8 percent of JX's total supply.
As an alternative source of oil, Kimura said, "Saudi Arabia would be the first choice."
Given the political instability in Libya, Kimura predicts oil prices will rise in the short term, but will hover between $110 and $200 per barrel, the same level recorded by U.S. West Texas Intermediate (WTI) crude oil in April and May.
JX will also continue to expand its Ene-Farm home fuel cell battery business, which generates electricity for home use, such as boiling water.
The company is targeting sales of 50,000 units in fiscal 2015, the president said.
In addition, JX plans to increase production of lubricant oils in China and other countries, as overseas demand rises for engine oils for cars.
Kimura said JX will nearly double overseas sales of lubricants to 700,000 kiloliters in fiscal 2015, and is considering building new plants in Thailand and India.