Japanese energy giant JERA has signed a memorandum of understanding (MOU) with Korea Gas Corporation (KOGAS) for cooperation in the LNG business.

The agreement is aimed at minimising the uncertainty over the LNG supply in the aftermath of Russia’s invasion of Ukraine.

“Russia’s invasion of Ukraine has created a severe energy environment, such as the reduction of pipeline gas supply to Europe, and the uncertainty regarding global energy supply is drastically increasing”, the Japanese company said in its press statement.

The companies will discuss options for mutual collaboration in the LNG sector, including LNG swaps, trading, ship optimisation, and market view exchange.

JERA and KOGAS, which are among the largest buyers in the global LNG market, are looking to create joint plans for LNG supply and demand to improve energy supply in Japan and Korea.

“As a long-term matter, there is an acceleration of the Energy Transition to a carbon-neutral future. LNG will play an even more important role as Transition Energy not only in Europe but also in Asia,” the statement added.

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By GlobalData

The Japanese energy giant added that that as a long-term matter, there is an acceleration of the energy transition to a carbon-neutral future and LNG will play an even more important role as transition fuel not only in Europe but also in Asia.

In March this year, Chevron New Energies has signed a memorandum of understanding (MoU) with JERA to explore a collaboration on carbon capture and storage (CCS) projects in the US and Australia.

Through the MoU, the firms could also expand their relationships to liquid natural gas (LNG) and advance lower carbon solutions.