JERA has entered into its first long-term LNG sale and purchase agreement outside Japan with Torrent Power of India. The 10-year contract, starting in 2027, involves the annual supply of approximately 270,000 tonnes of LNG, equivalent to four cargoes per year, on a Delivered Ex-Ship basis from JERA's portfolio.

Strategic Rationale and Market Optimization

The agreement leverages the complementary seasonal demand patterns between Japan and India. This allows JERA to optimize the use of its global LNG fleet during Japan's lower-demand periods, enhancing its ability to manage different demand cycles and deliver stable energy across Japan and Asia.

JERA's Broader LNG Strategy and Portfolio

This deal is part of JERA's broader strategy to secure long-term LNG contracts, which it views as a key stabilizer for Japan's electricity prices and an indispensable foundation for a stable power supply. The company is a major LNG buyer and has recently announced several other significant agreements. These include a $1.5 billion shale gas investment in a US project and a letter of intent for a 20-year supply from the Alaska LNG project. JERA plans to increase its long-term contract volumes by 20% by 2030 through procurement from sources like the US and Qatar, aiming to boost profitability by reselling supplies overseas while meeting domestic demand. The company also holds direct interests in liquefaction projects in Australia.