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. The agreement covers the supply of three cargoes per year, amounting to approximately 200,000 tonnes of LNG, for a five-year period starting in 2027.

Supply Details and Sourcing

The LNG will be delivered on a delivered ex-ship basis to Japan from December to February each year. The volumes will be sourced from Woodside's global portfolio, which includes assets such as the Scarborough, North West Shelf, and Pluto LNG projects in Australia, as well as the under-construction Louisiana LNG project in the United States once it becomes operational.

Strategic Partnership and 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 loan agreement with JBIC to support the Scarborough Energy Project. According to JERA's LNG division head, the agreement strengthens supply resilience and flexibility to manage seasonal demand fluctuations, thereby supporting a stable energy supply for Japan.