Japan's JERA signss LNG sales agreement with Hokkaido Gas

JERA, Japan's largest power generator, has signed an agreement to sell and buy liquefied gas with Hokkaido Gas. The deal will see JERA supplying two-to three LNG cargoes per year for seven years starting in 2027. JERA will deliver 130,000-200,000 metric tonnes of LNG per year, delivered ex ship, under the agreement.

It said that the deal would strengthen Japan's energy security, diversify JERA's portfolio of LNG sales, and enhance stability and flexibility in the domestic market.

JERA, a?of the largest LNG buyers in the world, signed a?long-term LNG export agreement with India's Torrent Power earlier this month. The deal calls for Torrent Power to supply four cargoes yearly starting 2027.

JERA has stated that it will build an 'equilibrium LNG portfolio'?across Asia and the Middle East as well as the United States in order to improve its resilience to?market volatility. JERA said that it would also pursue cost-competitiveness and 'deepen collaborations with local partners' while expanding LNG sales in Asian markets.

JERA is a joint venture of Tokyo Electric Power and Chubu Electric Power. It is a major LNG trading company, handling 30 to 35 million tonnes of LNG per year, both for domestic consumption and to be resold elsewhere. (Reporting and editing by Barbara Lewis; Yuka Obayashi)

(source: Reuters)