In a bid to exploit the current situation in the US, where supply margins are becoming increasingly tight, Japan’s Kansai Electric is to enter the energy trading market. In an equal partnership with Morgan Stanley Dean Witter & Co, Kansai intends to ship six idle gas turbines from Japan to the US where they will collectively generate some 360 MWe. The alliance, tentatively called Naniwa Power, is examining potential locations for the six turbine units that include Arizona, Washington, Georgia, Nevada and Canada.
The units are expected to begin operating in June next year. According to Kansai’s vice president, Takashi Iwasaki, as reported by Dow Jones, total investment costs are between $50 and $100 million while Kansai will save some ¥700 million ($6.6 million) annually in maintaining the six idle plants.
