SINGAPORE (March 31): Noble Group has formed a new Australian joint venture with Shikoku Electric Power Co Inc with a focus on the competitive procurement, sales and risk management of high-quality thermal coal for Japanese power stations.

The commodities trader says it is one of a handful of companies worldwide that supply to all 10 Japanese power utilities firms, and over the years its franchise in the region has expanded from physical contracts to the provision of price risk management services.

The joint venture, formed in a bid to capitalise on opportunities arising from the full liberalisation of the Japanese retail electricity market, will benefit from direct involvement in the coal producing companies in Australia, as well as access to Noble’s long-term equity, marketing and supply agreements.

Noble says the ability to enhance its links with a partner such as Shikoku, with the dedicated supply chains and volumes that this brings, “secures our business visibility”.

The vehicle will also actively manage inventories, allowing for risk management and volume flexibility depending on actual consumption requirements.

This marks Noble’s first-ever fuel procurement joint venture with a Japanese partner.

At 2.57pm, Noble Group was down 1.1% at 46 cents.