Cheniere Marketing, a subsidiary of U.S. player Cheniere Energy, has signed a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) with Japan’s JERA.
The Japanese giant will purchase approximately 1 million tonnes per annum (mtpa) of LNG from Cheniere Marketing on a free-on-board basis from 2029 through 2050 under the new deal. The purchase price for this LNG is indexed to the Henry Hub price, and it includes a fixed liquefaction fee.
Jack Fusco , Cheniere’s President and Chief Executive Officer, said: “This SPA fortifies our longstanding relationship with JERA, which is based upon years of cooperation and mutually beneficial LNG trade. We look forward to providing our flexible, reliable and cleaner burning LNG to JERA through 2050 under this new long-term agreement.”
This follows a heads of agreement (HoA) with Cheniere and deals with other U.S. players JERA inked in June . The Japanese player also secured LNG volumes through other agreements, for example, with Sempra , Woodside Energy , and ADNOC .
“This long-term agreement with Cheniere—a global leader in LNG—supports JERA’s strategy to diversify and strengthen our LNG procurement portfolio, reinforcing our role as a long-term energy partner in the U.S. and deepening our commitment to securing reliable energy supplies,” noted Yukio Kani, Global CEO and Chair of JERA.
As for Cheniere Energy, the U.S. player took a final investment decision (FID) for the Corpus Christi Midscale Trains 8 & 9 and debottlenecking project in June. This will see the addition of two trains next to its Corpus Christi Stage 3 project (CCL Stage 3) on the La Quinta Ship Channel in South Texas.