According to the company’s website news release on April 28, 2023, JERA Co., Inc. (“JERA”) has signed a LNG Sales and Purchase Agreement (“LNG SPA”) with Venture Global CP2 LNG, LLC (“Venture Global CP2”).
Pursuant to the LNG SPA, JERA will purchase approximately 1.0 million tons per year of LNG produced from the CP2 project in the United States, operated by Venture Global CP2, from the commencement of commercial operation of the project for 20 years.
LNG procurement competition has been intensifying and thus, stable procurement of LNG in a timely manner in line with the domestic electricity supply-demand situation is needed to secure a stable supply of energy in Japan.
This is a destination free FOB contract, which enable JERA to secure LNG in a high flexible manner and is expected to help with JERA’s capability to respond to volatility in the domestic electricity supply and demand.
JERA will continue to strive for flexible procurement to contribute to fuel supply stability and stable supply of energy in Japan.
