Fukushima operator Tepco and Mitsubishi bag Qatar gas plant contract

Friday, May 29, 2015

Tokyo Electric Power (Tepco), the operator of Japan's crippled Fukushima Daiichi nuclear plant, and Mitsubishi have bagged a contract to build a ¥300bn (£1.6bn, €2.2bn, $2.5bn) gas-fired power plant in Qatar.

Operations are scheduled to start in 2017, the Japanese firms said in a statement.

Tepco and Mitsubishi will invest 30% in a special purpose company in charge of building and running the 2.4GW gas-fired station along with a water desalination plant, located 20km south of Doha, for 25 years.

Qatar Electricity & Water will invest 60% in the special purpose company, while Qatar Petroleum and Qatar Foundation will each hold a 5% stake in that entity, the statement added.

Tepco is struggling financially as it attempts to recover from the multi-billion dollar burden of cleaning up the Fukushima nuclear disaster. And the Qatari project will help the utility company diversify.

Tepco and Mitsubishi hold their 30% of the Qatari project through K1 Energy, in which Tepco has a meager 1.5% stake.

But the utility could increase its holding in K1 to up to 33.3% by the end of September, according to the statement.

On 23 May, Japan's Ministry of Economy, Trade and Industry (Meti) said it will coordinate bids with about 30 domestic companies, probably including Tepco and Mitsubishi.

On 21 May, Japan unveiled a plan to provide $110bn in aid for Asian infrastructure projects.

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