Under the agreement, Toshiba Energy Systems & Solution Corp and Toshiba Plant System & Services Corp will handle engineering, procurement and construction, said a Jera spokesman, declining to disclose the term.

Jera, a joint venture between Tokyo Electric Power Company Holdings Inc and Chubu Electric Power Co Inc, and JXTG Nippon Oil, a unit of JXTG Holdings Inc, plan to build three liquefied natural gas (LNG)-fired thermal power plant of 780 megawatt each, with an aim to start operation in 2024-2025.

The new plant, which is to replace Jera's gas-fired power plant, will use General Electric Co's 9HA.02 gas turbines and aims to achieve thermal efficiency of 64%, the Jera spokesman said.

Jera declined to give an estimated construction cost, but it is expected to exceed 200 billion yen ($1.86 billion), according to an industry source.

(Reporting by Yuka Obayashi; Editing by Subhranshu Sahu)