JERA expands its trading portfolio, and expects to sell more LNG overseas

The head of JERA's new global LNG unit stated that the company expects to sell more natural gas outside Japan in the next two-year period as it expands its trading portfolio. This will help to safeguard energy security from volatile power demand.

JERA Global Energy Solutions (JERA-GES), the Singaporean entity that was launched in July of this year, is looking to balance the seasonal fluctuations in Japan’s LNG demand. It will do so by expanding its client base beyond Japan and adding greater flexibility to its portfolio.

The Japanese market is still volatile. Sayyed stated that we expect the future introduction of renewable energies to make peaks and troughs even bigger.

He said that a more diverse, flexible, and larger portfolio, combined with sales to overseas markets, would help JERA manage domestic demand swings better.

He said that the bigger his portfolio was, the easier it would be for him to "shrink" the distance between shoulder months and winter periods.

JERA is the largest LNG buyer in Japan. It's a joint venture between Chubu Electric Power and Tokyo Electric Power. The company handles between 35 and 40 million metric tonnes of LNG per year, the majority of which are used to generate electricity.

JERA GES aims at establishing positions on overseas markets. The majority of JERA LNG volumes is currently going to Japan. JERA signed a long-term contract with India's Torrent Power in December. Torrent Power will use LNG to power its power plants, and sell it to consumers, small businesses, and the transport sector.

Sayyed stated, "I hope that we will start to see some fruit of our labour within the next 12 months."

He anticipates that JERA will complete a few LNG sales outside of Japan during this period, building upon?interests in Southeast Asia and studying new opportunities for South Asia.

Sayyed said JERA GES also monitored emerging markets where the competition for gas turbines could slow down?the development?of power infrastructure.

He said that "the demand for LNG will continue to exist, and the data centres are creating this short position of LNG."

We're always looking for new opportunities to invest in power plants and regasification facilities. We are happy to bring LNG and invest in the area.

(source: Reuters)