Tepco to restart two quake-hit oil-fired Kashima units Fri

Tokyo (Platts)--7Apr2011/632 am EDT/1032 GMT

Japan's Tokyo Electric Power Company plans to restart two oil-fired units at its earthquake-hit Kashima thermal power plant Friday, which would increase its total power supply capacity to 40.5 GW, company officials said Thursday.

Tepco is restarting the 600 MW No.2 oil-fired unit and the 1 GW No.5 oil-fired unit at Kashima, but its No.5 unit will initially be running at 50% of capacity, which would provide the combined 1.1 GW electricity supply, the officials said.

Tepco's latest restart of the two oil-fired units comes after it had restarted Wednesday its 600 MW No. 3 oil-fired unit at the Kashima plant on the east coast of Japan having failed to restart the unit Tuesday, the officials said.

Even after the restart of the Kashima No.3 unit, Tepco's power generation capacity stood at around 39.4 GW Wednesday because the company had lowered capacity from other sources such as hydropower, the officials said.

Tepco is restarting the March 11 earthquake-hit units and thermal power generation units after scheduled maintenance in a bid to hike power generation capacity by 7.6 GW by the end of July.

With that expected restoration of capacity, Tepco now estimates that it will be able to hike its electricity supply capacity to 46.5 GW by the end of July, when the country will be in the middle of the summer power demand season.

Meanwhile, the Petroleum Association of Japan president Akihiko Tembo told reporters April 1 that Tepco's incremental oil demand this summer as a result of its nuclear outage would be limited.

Speaking at a press conference in Tokyo, Tembo said that it was unlikely that the Japanese oil industry would see an immediate hike in incremental oil demand from Tepco because its earthquake and tsunami-hit Hirono thermal power plant will not come back on stream in the near future.

Pointing to Tepco's nuclear outage at its Kashiwazaki-Kariwa nuclear power plant in the wake of a strong earthquake in 2007, Tembo said that the local oil industry faced a surge in oil demand from Tepco because the Hirono thermal power plant was operating.

But while Tepco has named the 1.6 GW oil-fired Hirono plant as one of its thermal power plants, it has not included it in its list of thermal power plants expected to be restarted by the end of July.

--Takeo Kumagai, takeo_kumagai@platts.com

 

To subscribe or visit go to:  http://www.platts.com

 The McGraw-Hill Companies