NYSE-listed Cheniere Energy has signed a long-term sale and purchase agreement with Japan’s JERA under which it will supply 1 million tonnes per year (tpy) of LNG, the companies announced on Thursday.
Under the terms of the deal, JERA will purchase the gas on a free-on-board basis at a price indexed to Henry Hub, and will pay a fixed liquefaction fee. Deliveries are scheduled to begin in 2029 and are expected to continue until 2050.
“This agreement fortifies our longstanding relationship with JERA, which is based upon years of co-operation and mutually beneficial LNG trade. We look forward to providing our flexible, reliable and cleaner-burning LNG to JERA under this new long-term agreement,” said Cheniere president and CEO Jack Fusco.
Cheniere’s LNG business is one of the largest in the world, encompassing gas procurement and transportation, liquefaction, vessel chartering and LNG delivery. The company operates liquefaction facilities in Corpus Christi and Sabine Pass for a total production capacity of 49 million tpy, and has expansion plans for an additional 12 million tpy.
“This long-term agreement supports JERA’s strategy to diversify and strengthen our LNG procurement portfolio, reinforcing our role as a long-term energy partner in the USA and deepening our commitment to securing reliable energy supplies,” commented Yukio Kani, global CEO and chair of JERA.
JERA is the largest power producer in Japan, accounting for about one-third of the country’s electricity supply, and one of the largest LNG importers in the world.
Source: theenergyyear.com