JERA, Japan’s power generation company, has signed an LNG sale and purchase agreement (SPA) with Hokkaido Gas.

Under the agreement, JERA will supply two to three LNG cargoes per year, equivalent to approximately 130,000 to 200,000 metric tonnes annually, on a delivered ex-ship (DES) basis from its extensive global LNG portfolio.

This contract term is seven years, beginning in 2027.

By supplying LNG to Hokkaido Gas, a key regional energy provider, JERA contributes to reinforcing Japan’s energy security and enhancing supply resilience.

This agreement also supports JERA’s efforts to diversify its LNG sales portfolio while strengthening the stability and flexibility of LNG supply for Japan’s domestic energy market. 

Under its “Growth Strategy for Realising the 2035 Vision”, JERA aims to strengthen its role as a global LNG leader with an integrated value chain by diversifying both procurement and sales channels.

This agreement follows JERA’s recent sales agreement with Torrent Power in India and reflects the company’s continued efforts to enhance its LNG portfolio while responding flexibly to demand fluctuations in Japan and across Asia.

Looking ahead, JERA will continue to build a balanced LNG portfolio across the Asia, Middle East, and the United States to strengthen resilience against market volatility.

Leveraging the trading, optimisation, and LNG operational capabilities developed through JERA Global Markets, the company aims to enhance cost competitiveness and deepen collaborations with Japanese domestic energy partners and further expand its LNG sales across the Asian markets. -TradeArabia News Service