JERA, Japan’s largest power generation company, has finalised a series of landmark 20-year agreements to procure up to 5.5 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from the United States, reinforcing both Japan’s energy security and the US’s position as a global LNG leader.
The deals, announced at the US Department of Energy headquarters in Washington, D.C., include sales and purchase agreements (SPAs) with NextDecade and Commonwealth LNG, as well as heads of agreement with Sempra Infrastructure and Cheniere Marketing.
Under these agreements, JERA will secure LNG at competitive pricing, with flexible contract terms and no destination restrictions, allowing for optimised shipping and enhanced market responsiveness.
The company’s strategy is to diversify and strengthen its LNG procurement portfolio, mitigating price instability, responding to demand fluctuations, and leveraging JERA Global Market’s trading expertise.
Commonwealth LNG will supply 1 mtpa from its 9.5 mtpa facility under development in Louisiana, with first LNG expected in 2029.
The SPA with Commonwealth LNG will become effective upon meeting customary conditions.
Sempra Infrastructure will provide 1.5 mtpa from the Port Arthur LNG Phase 2 project in Texas.
JERA will also obtain 2 mtpa from NextDecade’s Train 5 at the Rio Grande LNG facility, and up to 1 mtpa from Cheniere Marketing’s Corpus Christi LNG and Sabine Pass LNG facilities in Texas and Louisiana, respectively.
JERA Global CEO and Chair Yukio Kani said: “As Japan’s largest power provider, JERA plays a central role in securing the country’s energy future.
“After more than 15 months of strategic evaluation and commercial engagement, we are pleased to finalise the agreements with US suppliers, which offer unique flexibility and reliability – essential elements in our diversification strategy.
“These agreements strengthen Japan’s energy security, reaffirm the US’ leading role in the global LNG market, and support long-term sustainable economic development for both countries.”
These new agreements build on JERA’s existing US contracts, which already include 3.5 mtpa from Freeport LNG and Cameron LNG, and a recent 1 mtpa agreement with Venture Global CP2.
The economic impact is substantial, with the deals expected to contribute around $200 billion to US GDP and sustain 50,000 jobs annually — surpassing JERA’s current $6 billion equity investment in the US.
The agreements are seen as a critical step in ensuring a stable and affordable energy supply for Japan and Asia, while also supporting the region’s broader energy transition.
