The Japanese power utility JERA has finalised 20-year agreements to procure up to 5.5 Mt/year of LNG from the United States. The deals include sales and purchase agreements (SPAs) with the US’ NextDecade Corporation (2 Mt/year from Rio Grande LNG over 20 years) and Commonwealth LNG (1 Mt/year from Commonwealth LNG over 20 years) as well as heads of agreement (HoA) with Sempra Infrastructure (1.5 Mt/year from Port Arthur LNG - phase 2 over 20 years) and Cheniere Marketing (up to 1 Mt/year from Corpus Christi LNG and Sabine Pass LNG over more than 20 years). All volumes will be delivered on a free on board (FOB) basis with no destination restrictions. The total value of these transactions also surpasses JERA’s cumulative equity investment in the US, which currently stands at US$6bn.
With these deals, JERA will nearly triple its LNG imports from the US, as the Japanese group currently buys around 3.5 Mt/year of US LNG from Freeport LNG and Cameron LNG. In 2023, JERA also entered into a 1 Mt/year agreement with Venture Global CP2.