Japan’s power generation major JERA has won a long-term liquefied natural gas (LNG) supply agreement with Hokkaido Gas, said to be a key regional energy provider.
Thanks to a seven-year sale and purchase agreement (SPA) with Hokkaido Gas, JERA will supply two to three LNG cargoes per year, equivalent to approximately 130,000 to 200,000 metric tonnes annually, on a delivered ex-ship (DES) basis from its extensive global LNG portfolio, beginning in 2027.
The Japanese major claims that supplying LNG to Hokkaido Gas enables it to contribute to reinforcing the country’s energy security and enhancing supply resilience.
The deal is believes to also support JERA’s efforts to diversify its LNG sales portfolio while strengthening the stability and flexibility of LNG supply for Japan’s domestic energy market.
The company’s ‘Growth Strategy for Realizing the 2035 Vision’ aims to strengthen its role as a global LNG leader with an integrated value chain by diversifying both procurement and sales channels. Looking ahead, JERA plans to continue to build a balanced LNG portfolio across the Asia, Middle East, and the United States to strengthen resilience against market volatility.
Leveraging the trading, optimization, and LNG operational capabilities developed through JERA Global Markets, the company intends to enhance cost competitiveness and deepen collaborations with Japanese domestic energy partners and further expand its LNG sales across the Asian markets.
This SPA follows the firm’s recent sales agreement with Torrent Power in India and is perceived to reflect the Japanese player’s continued efforts to enhance its LNG portfolio while responding flexibly to demand fluctuations in Japan and across Asia.