Australian Company to Supply JERA with LNG in Peak Demand Months

Woodside Energy has entered into a sale and purchase agreement with Japan's JERA to supply liquefied natural gas cargoes specifically during the northern hemisphere winter months, when Japanese demand is at its peak.

Agreement Details

The agreement covers the supply of three cargoes per year, approximately 200,000 tonnes of LNG, during Japan's winter period. This arrangement is set for a five-year term starting in 2027. The LNG will be delivered on a delivered ex-ship basis to Japan from December to February each year.

Supply Sources

The LNG volumes for JERA will be sourced from Woodside's global portfolio. This includes leveraging assets from Australian projects such as Scarborough, North West Shelf, and Pluto LNG. Supply will also come from the under-construction Louisiana LNG project in the United States once it becomes operational.

Strategic Partnership Context

This agreement builds upon an existing framework for enhanced cooperation on energy security, established by the Japanese government and the Japan Bank for International Cooperation. It follows a 2024 transaction where Woodside sold a 15.1% non-operating interest in the Scarborough Joint Venture to JERA and secured a related loan agreement with JBIC to support the Scarborough Energy Project.

Strategic Importance

For JERA, this agreement enhances supply resilience and flexibility, allowing for a more effective response to seasonal demand fluctuations. It is designed to support Japan with a stable and reliable energy supply, particularly during the critical winter season.