Japan’s energy major JERA has signed a 20-year LNG sales and purchase agreement (SPA) with US LNG export project developer Venture Global CP2 LNG.
Pursuant to the LNG SPA, JERA is expected to purchase approximately one million tonnes per year of LNG produced from the Venture Global-operated CP2 project in the United States (US).
JERA said the contract is a destination-free FOB, which enables it to secure LNG in a highly flexible manner and is expected to help with JERA’s capability to respond to volatility in the domestic electricity supply and demand.
Japan’s major noted it will continue to strive for flexible procurement to contribute to fuel supply stability and a stable supply of energy in Japan.
To remind, the construction of CP2 LNG is set for 2023, and the terminal is expected to have a capacity of 20 million MTPA of LNG and a peak capacity of approximately 24 MTPA. It will be located in Cameron Parish, Louisiana.
Besides CP2, Venture Global’s LNG projects include Plaquemines , Calcasieu Pass, and Delta, and its customers are energy majors such as ExxonMobil, Chevron, EnBW, and others.
At the beginning of 2023, Venture Global CP2 LNG signed a 20-year LNG SPA with China Gas Hongda Energy Trading, a wholly-owned subsidiary of China Gas Holdings, and in December 2022, it signed a SPA with Japan’s oil and gas company Inpex.