Japan's largest power generation company, Jera Co., announced that it has reached a long-term procurement agreement with a US supplier for 5.5 million tons of liquefied Henry Hub Natural Gas annually.
According to the Zhito Finance APP, Japan's largest power generation company, Jera Co., has announced a long-term procurement agreement with a US supplier for the purchase of 5.5 million tons of liquefied Henry Hub Natural Gas annually.
CEO Yukio Kani stated in an interview that this 20-year agreement includes procurement contracts with NextDecade (NEXT.US) and Commonwealth LNG LLC, as well as a letter of intent signed with Sempra Energy (SRE.US) and Cheniere (LNG.US).
This move further solidifies Japan's position as the second largest LNG importer in the world. At a time when the US government is vigorously promoting energy exports, Tokyo is attempting to gain leverage in tariff reductions during bilateral trade negotiations by expanding imports of US Energy.
Kani stated that despite Japan vigorously developing renewable energy and restarting nuclear power, 'from the perspective of energy security, LNG remains a key energy source.' With the booming artificial intelligence industry, the Japanese government expects significant growth in electricity demand over the next decade and has urged domestic private power companies to ensure more LNG supply.
All contracts signed by Jera this time include flexible delivery terms, allowing cargo to be redirected to other regions if domestic demand in Japan is weak. Over the past decade, Jera has continuously strengthened its LNG trading capabilities, often reselling excess supplies to Europe or other Asian buyers.
