JERA Co., Inc., Japan’s largest power generation company and a global leader in providing cutting-edge solutions to the world’s energy issues, has joined U.S. Secretary of the Interior, Doug Burgum, Energy Secretary, Christopher Wright – who also serve as Chair and Vice Chair of the National Energy Dominance Council, respectively – and Shigeo Yamada, Ambassador of Japan to the USA, to finalised 20-year agreements to procure up to 5.5 million tpy of LNG from the US.
The agreements, which were introduced publicly today at the U.S. Department of Energy headquarters in Washington, D.C., advance JERA’s long-term strategy to build a diversified and resilient LNG procurement portfolio in support of stable, secure energy for Japan and Asia. Through long-term offtake commitments, the agreements are expected to support economic activity that could contribute approximately US$200 billion to US GDP and sustain 50 000 jobs annually, according to S&P Global analysis. The total value of these transactions also surpasses JERA’s cumulative equity investment in the US, which currently stands at US$6 billion.
The agreements include sales and purchase agreements with NextDecade Corp. and Commonwealth LNG, as well as heads of agreement with Sempra Infrastructure and Cheniere Marketing LLC, to secure future LNG supply from the US. US LNG procured through these partnerships uniquely supports JERA’s strategic priorities by offering competitive pricing, flexible contract terms, and strong market fundamentals. All volume will be delivered under free on-board) terms with no destination restrictions, allowing JERA to optimise shipping routes and respond flexibly to evolving market conditions and LNG demand across the Asia-Pacific region. The new agreements build upon and enhance JERA’s existing operations in the US, which include offtake contracts totalling 3.5 million tpy from Freeport LNG and Cameron LNG. JERA also entered into an approximately 1 million tpy LNG offtake agreement with Venture Global CP2 in 2023.
JERA Global CEO and Chair, Yukio Kani, stated: “As Japan’s largest power provider, JERA plays a central role in securing the country’s energy future. After more than 15 months of strategic evaluation and commercial engagement, we are pleased to finalise the agreements with US suppliers, which offer unique flexibility and reliability – essential elements in our diversification strategy. These agreements strengthen Japan’s energy security, reaffirm the US’s leading role in the global LNG market, and support long-term sustainable economic development for both countries.”
Kani continued: “The Agreements represent a true win–win and reflect a strong commercial partnership between the two long-standing allies. We are grateful for the constructive and collaborative engagement of our industry partners and stakeholders in both Japan and the US that made these agreements possible. We look forward to building on this momentum with partners and customers around the world.”
Ministry of Economy, Trade and Industry (METI), Japan, commented: “Securing a stable and flexible LNG supply for thermal power generation is vital to Japan’s energy security. METI welcomes JERA’s long-term agreements with US suppliers – key partners to Japan – as an important step toward this goal. Such contracts contribute to supply and price stability for consumers and play a crucial role in ensuring a reliable energy supply for our country.”
