Japanese energy giant JERA has signed a memorandum of understanding (MoU) with South Korea’s state-owned natural gas importer and transporter Korea Gas Corporation (KOGAS) for cooperation in the LNG business.
Pursuant to the MoU which seeks to secure the stability of LNG supplies, JERA and KOGAS agreed to discuss opportunities for mutual collaboration in the LNG business including LNG swaps, trading, ship optimisation, and market view exchange.
“Russia’s invasion of Ukraine has created a severe energy environment, such as the reduction of pipeline gas supply to Europe, and the uncertainty regarding global energy supply is drastically increasing” , the companies said.
In response to these circumstances, the parties seek to strengthen their strategic relationship and consider developing schemes of cooperation regarding their LNG supply and demand, to enhance stable energy supply in Japan and Korea.
JERA added it will continue to work together with LNG buyers and other leading companies both within and outside Japan such as KOGAS as it seeks to enhance procurement capabilities.
In this regard, at the end of 2022, the Japanese company signed a key term sheet with Oman LNG for the long-term sale and purchase of LNG. Under the 10-year agreement, JERA will purchase up to 12 cargoes (approximately 0.8 million tons) per year of LNG produced from the Oman LNG project starting in 2025.