Cheniere Energy, Inc. subsidiary Cheniere Marketing LLC has entered into a long-term liquefied natural gas (LNG) sale and purchase agreement with JERA Co. Inc.
JERA has agreed to purchase approximately 1.0 million metric tons per annum (mtpa) of LNG from Cheniere Marketing on a free-on-board basis from 2029 through 2050. The purchase price for LNG SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee, the two companies said in a joint news release.
“We are pleased to enter into this multi-decade agreement with JERA, the largest power producer in Japan and one of the largest buyers of LNG in the world,” Cheniere President and CEO Jack Fusco said. “This SPA fortifies our longstanding relationship with JERA, which is based upon years of cooperation and mutually beneficial LNG trade. We look forward to providing our flexible, reliable and cleaner burning LNG to JERA through 2050 under this new long-term agreement”.
JERA Chair and Global CEO Yukio Kani said, “JERA and Cheniere have built a trusted relationship over many years, and we are pleased to extend this relationship further. This long-term agreement with Cheniere—a global leader in LNG—supports JERA’s strategy to diversify and strengthen our LNG procurement portfolio, reinforcing our role as a long-term energy partner in the U.S. and deepening our commitment to securing reliable energy supplies. Together, we will continue to contribute to the energy security, stability, and sustainability of Japan and the broader region for decades to come”.
JERA’s Offshore Wind JV with BP
Earlier in the month, JERA said it formed a new 50-50 joint venture with BP plc to form JERA Nex bp, targeted to be a global offshore wind developer, owner, and operator.
The joint venture’s portfolio of operating assets and development projects has a net potential generating capacity of 13 gigawatts (GW), including around 1 GW of installed net generating capacity, a 7.5-GW development pipeline, and an additional 4.5GW of secured leases, JERA said in an earlier statement.
JERA Nex bp, which is planned to be based in London, plans to “initially focus on disciplined and prioritized development of projects from its existing global pipeline while continuing to safely and efficiently operate existing assets in Europe and Asia,” according to the statement.
A Japan-focused unit, JERA Nex bp, has also been established, with former managing executive officer of JERA Masato Yamada appointed as CEO, the statement said.
JERA Nex bp CEO Nathalie Oosterlinck said, “JERA Nex bp begins life with a strong operating portfolio and an extensive development pipeline. We bring together two highly capable teams with the experience, relationships, purchasing power and unique global access of two of the East and West’s pre-eminent energy companies. This gives us the expertise and experience to find new ways to create value from offshore wind and become one of the world’s leading companies in the sector”.
William Lin, BP executive vice president for gas and low carbon energy, said, “Today’s launch marks an important delivery milestone for JERA Nex bp and we are proud to be a partner in this top-tier global offshore wind developer. The JV allows bp to optimize and decapitalize our low carbon energy portfolio as we continue to maintain optionality for electron flows and more material value realization through this decade and the next”.
“JERA is a phenomenal partner with an impressive operating and development portfolio, [a] wealth of expertise and complementary capabilities. With a disciplined, value-driven focus for development, JERA Nex bp will be an incredible vehicle to progress a global pipeline of projects,” Lin added.
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