Enron May Scrap All 4 Power Projects in Japan

- AOMORI, Japan (Kyodo via COMTEX) -- Failed U.S. energy giant Enron Corp. may cancel all of its four thermal power generation projects in Japan, Aomori prefectural government officials said Tuesday.

E Power Corp., a Tokyo subsidiary of the Houston-based firm, told the prefectural government that E Power will decide on its Japanese operations within the next three weeks following Enron's filing for bankruptcy proceeding Sunday, the officials said.

The decision will be between "either continuing all four power projects or ending them all," the officials quoted an E Power official as saying.

Enron had planned to build a thermal electricity plant powered by liquefied natural gas in the village of Rokkasho, Aomori Prefecture, in northern Japan.

The prefectural government, which hopes the U.S. firm will continue the Rokkasho project, contacted E Power immediately after reports of Enron's failure on Sunday, the officials said.

Aomori Gov. Morio Kimura told a press conference Tuesday his government will "carefully monitor the situation, with hopes for a continuation of operations."

In addition to Rokkasho, Enron is involved in projects to build power plants in the city of Matsuyama, Ehime Prefecture, in Ube, Yamaguchi Prefecture, and in Omuta, Fukuoka Prefecture.