Tokyo Gas Co., Showa Shell Sekiyu K.K. and Shell Gas & Power Japan Ltd. said Tuesday they will establish a joint venture on Aug. 1, hoping to launch a power generation project by 2009.
To be capitalized at 150 million yen, Ohgishima Power Co. will be owned 51 percent by Tokyo Gas and 24.5 percent each by Showa Shell and Shell Gas B.V., an investment company of the Shell Group, the companies said in a press statement.
The president of the joint venture will come from Tokyo Gas.
In anticipation of next year's partial deregulation of the retail electricity market in Japan, Tokyo Gas aims to expand the number of major clients by establishing a system to provide both electricity and gas, Tokyo Gas officials said.
The Royal Dutch/Shell Group hopes the new business will have a synergetic effect on sales of its petroleum, group officials said.
Ohgishima Power will deliberate on the feasibility of a project to build three 400,000-kw thermal power plants on land that Showa Shell Sekiyu possesses in Yokohama over about three years and will conduct environmental assessments in the area, they said.
Ohgishima Power will consider electricity provision to electricity retailers and to corporate clients, they added.