JERA Co., Inc., Japan’s largest power generation company, has finalised 20-year agreements to procure up to 5.5 million tonnes per year of liquefied natural gas from the United States. The agreements were announced at the US Department of Energy headquarters in Washington, DC, with US secretary of the Interior Doug Burgum, Energy secretary Christopher Wright, and Japanese ambassador Shigeo Yamada in attendance.
The comprehensive agreements include Sales and Purchase Agreements with NextDecade Corporation and Commonwealth LNG, as well as heads of agreement with Sempra Infrastructure and Cheniere marketing LLC. According to S&P Global analysis, the long-term offtake commitments are expected to contribute approximately $200 billion to US GDP and sustain 50,000 jobs annually, surpassing JERA’s current $6 billion cumulative equity investment in the United States.
All LNG volumes will be delivered under FOB (Free on Board) terms without destination restrictions, providing JERA flexibility to optimise shipping routes and respond to evolving market conditions across the Asia-Pacific region. The new agreements complement JERA’s existing US operations, which include 3.5 million tonnes per year from Freeport LNG and Cameron LNG, plus a 1.0 MTPA agreement with Venture Global CP2 signed in 2023.
Yukio Kani, JERA Global CEO and chair, emphasised that the agreements strengthen Japan’s energy security while reaffirming the U.S.’s leading role in the global LNG market. He described the deals as supporting long-term sustainable economic development for both countries following more than 15 months of strategic evaluation.
Japan’s Ministry of Economy, Trade and Industry welcomed the agreements as vital to the country’s energy security, noting their contribution to supply and price stability for consumers. The deals are designed to mitigate price instability, respond to renewable energy-driven demand fluctuations, and leverage JERA Global Markets’ trading expertise to enhance cost competitiveness and supply stability across Asia.
For more information visit www.jera.co.jp
