JERA, a major energy company in Japan, has signed a non-binding heads of agreement with Woodside Energy Trading Singapore for the procurement of liquefied natural gas (LNG) to meet the country’s winter energy demands.
The agreement, which includes potential supply from Australia’s Scarborough gas field, underscores the importance of LNG in supporting thermal power generation during peak periods.
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The deal aims to ensure a stable supply of LNG during the winter months when energy demand spikes.
The company said that gas-fired power generation is crucial for meeting this peak demand and balancing the seasonal fluctuations exacerbated by the increasing reliance on renewable energy sources.
Under the terms of the agreement, JERA and Woodside will engage in discussions to finalise the annual purchase of approximately 200,000 tonnes per annum (tpa) of LNG, equating to three cargoes during December to February over a five-year term, starting in fiscal year 2027 (FY27).
This strategic move is part of JERA’s broader efforts to secure energy supplies in anticipation of future needs.
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By GlobalDataIn addition to the agreement with Woodside, JERA has also entered into 20-year offtake agreements to procure up to 5.5 million tonnes per annum of LNG from the US.
These agreements include sales and purchase agreements with NextDecade and Commonwealth LNG, as well as heads of agreement with Sempra Infrastructure and Cheniere Marketing.
Earlier in January, JERA Global Markets, a utility-backed seaborne energy trader, finalised a $450m (Y66.52bn) deal with ADNOC Gas to supply LNG over three years.
This partnership not only reinforces ADNOC Gas’ reputation as a dependable clean energy supplier but also supports Japan’s energy security.
