JX ENERGY: Development of a 4.7 MW natural gas power generation project approved, plans to raise funds through equity financing
JX ENERGY reviewed short-term cash flow enhancement strategies at the board meeting, including hedging part of its natural gas production to improve cash flow stability in 2026. The company plans to develop a 4.7 megawatt natural gas power generation project, with an estimated cost of approximately CAD 3 million, and intends to raise funds through equity financing. The project will construct five generating units, which will be able to generate electricity independently and sell externally, enhancing the overall value of natural gas production
According to a report from Economic News Agency on the 6th, JX ENERGY (03395) announced that during the board meeting held on November 4 this year, the board reviewed the short-term cash flow enhancement strategy proposed by the management team. The strategy includes hedging part of the company's natural gas production to improve cash flow stability in 2026. The estimated AECO 5A price for 2025 is approximately CAD 1.62 per gigajoule, while the AECO 5A price for 2026 is expected to be higher. The company plans to hedge over 50% of its production for 2026 at a price above CAD 3.00 per gigajoule. As of today (the 6th), approximately 40% of the company's 2026 production capacity has been hedged at an average price of CAD 3.06 per gigajoule. JX ENERGY's 9.6 megawatt natural gas power generation project is progressing through the necessary regulatory approval processes as planned. In addition to this project, the board has approved the development of a 4.7 megawatt natural gas power generation project. The related project will construct five 0.94 megawatt generator units—four of which will be located at the company's existing well sites, and one at the JX ENERGY (Canada) site. Upon completion of the related projects, the company will be able to generate electricity independently and sell it externally, thereby enhancing the overall value of its natural gas production. JX ENERGY estimates that the costs for the engineering, procurement, and construction phases will be approximately CAD 3 million. The costs will be paid in phases and may be further adjusted based on subsequent quotes from other independent suppliers and current market conditions. To raise funds for project development, the company plans to raise capital through equity financing (including issuing new shares). (jl)
