The Kansai Electric Power (TYO:9503) plans to build new liquefied natural gas-fired plants as part of a broader push to increase generating capacity by about 30% by fiscal 2040, Nikkei Asia reported Monday, citing President Nozomu Mori.
This move is driven by rising electricity demand from semiconductor companies and data centers, the report said.
Under a new group plan calling for 15 trillion yen in investments by 2040, the company intends to replace older LNG thermal facilities with more efficient equipment while also building entirely new ones, the publication said.
Beyond its home base in the Kansai region, the company plans to collaborate with partners to develop thermal and renewable energy sources, the report said.
However, Mori noted that it is still too early to assess the earnings impact from rising fossil fuel costs due to Middle East tensions, the report added.
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