JERA signs US LNG deals aimed at securing, diversifying supply
Key takeaways from JERA US LNG deals
- JERA has signed 20-year deals for 5.5 million tpy of US LNG
- Deals include US LNG operators Sempra, Cheniere, Commonwealth, and NextDecade.
Japan’s largest power generation company has signed agreements to secure up to 5.5 million tonnes/year (tpy) of LNG from United States suppliers.
JERA Co. Inc. finalized 20-year agreements with US operators, announced from the US Department of Energy headquarters in Washington, DC, June 11.
The agreements include sales and purchase agreements and heads of agreements (HOA), and all volumes are expected to be delivered on a free-on-board basis with no destination restrictions, JERA said as part of its release. The signings come after more than 15 months of evaluation and commercial engagement, the company’s chief executive officer, Yukio Kani said.
The deals "offer flexibility and reliability – essential elements in our diversification strategy," and "strengthen Japan’s energy security,” he continued.
In a release June 11, Sempra said its non-binding agreement with JERA was executed for LNG offtake of 1.5 million tpy from the Port Arthur LNG Phase 2 development project in Jefferson County, Tex., which it said adds to the company’s progress towards reaching a final investment decision (FID) for the project.
The project has received all key permits and is expected to include two liquefaction trains capable of producing about 13 million tpy of LNG, which could increase the total liquefaction capacity of the Port Arthur LNG plant to about 26 million tpy from about 13 million tpy for Phase 1, which is under construction.
An HOA also was signed with Cheniere Energy for up to 1 million tpy of LNG from Corpus Christi LNG in Texas and Sabine Pass LNG in Louisiana.
Commonwealth LNG signed a sale and purchase agreement with JERA, subject to project FID, under which JERA will purchase 1 million tpy of LNG from Commonwealth’s 9.5 million tpy plant currently under development in Cameron, La. The company is targeting FID in this year’s third quarter with anticipated first LNG production in 2029.
The combined 5.5 million tpy volume also includes a May 2025 deal between JERA and NextDecade under which JERA agreed to purchase 2 million tpy from NextDecade’s Rio Grande LNG project in Texas, Reuters reported, also noting that following implementation of the new deals, JERA’s LNG supply from the US will increase to about 30% from the current 10% (OGJ Online, May 29, 2025).
JERA’s current US LNG offtake contracts total 3.5 million tpy from Freeport LNG and Cameron LNG. JERA also entered into a 1.0 million tpy offtake agreement with Venture Global CP2 in 2023 (OGJ Online, May 1, 2023).
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.
