TOKYO, March 13 (Reuters) - Osaka Gas (9532.T) , opens new tab, Japan's second-largest city gas provider, said its domestic thermal power generation capacity will reach 3.2 gigawatts by 2026 with the planned launch of two 600-megawatt gas-fired power units in Himeji, western Japan.

The company's current thermal power capacity stands at 2 GW.

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In its management plan for the 2025 fiscal year starting in April, and announced on Thursday, the utility said the No.1 600-MW unit of its Himeji power station will launch in January 2026, followed by the No.2 unit in May 2026.

Earlier this month, Osaka Gas and its three partners, including the Development Bank of Japan, announced plans to build the No.3 622.6-MW gas-fired power unit in Himeji, aiming to begin operations in 2030.

The project is intended to address the anticipated retirement of ageing thermal power plants across Japan and meet rising electricity demand, driven by the expansion of semiconductor factories and data centres, a spokesperson said.

Osaka Gas also plans to launch two 75-MW biomass power stations in 2025, bringing the total number of its biomass plants to eight, with a combined capacity of 450 MW.

Additionally, two energy storage plants with a combined capacity of 13 MW are set to become operational in the 2025 fiscal year, according to a company statement.

Osaka Gas signed a 15-year sales and purchase agreement with Abu Dhabi National Oil Company in February for the supply of liquefied natural gas from ADNOC's Ruwais project.

The company expects to pay a dividend of 105 yen ($0.7) per share for the 2025 fiscal year, up 10 yen from the current year's estimate, and is projecting a 13.4% increase in net profit to 127 billion yen.

($1 = 148.1400 yen)

https://www.reuters.com/business/energy/osaka-gas-forecasts-domestic-thermal-power-capacity-hit-32-gw-by-2026-2025-03-13/