JERA, Woodside Sign Seasonal LNG Deal for Winter Supply
(Reuters) — Japan's biggest power generator, JERA, and Australia's Woodside Energy have signed a deal for Woodside to supply JERA with liquefied natural gas only during the winter months, the companies said on June 20.
The Heads of Agreement was signed at the LNG Producer-Consumer Conference, co-hosted by Japan's industry ministry and the International Energy Agency in Tokyo.
Under the deal, Woodside will supply about 200,000 metric tons of LNG annually during the December to February period, starting in fiscal year 2027, a JERA spokesperson said, adding that the deal is for five years.
The agreement is unusual in that it covers only three months of the year instead of the whole year, which a regular term contract would cover, Yuya Hasegawa, a director at the Ministry of Economy, Trade and Industry said at a press conference.
He also said the deal would provide flexibility, allowing JERA not to take supplies when there is no need due to warmer-than-usual winter conditions.
Hasegawa said the ministry hoped Japanese companies would consider similar deals with other suppliers.
"If it spreads to other sources, it may lead to a reinforcing of Japan's stable procurement," he said.
JERA, jointly owned by Tokyo Electric Power and Chubu Electric Power, is Japan's largest LNG buyer.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- Court Ruling Allows MVP’s $500 Million Southgate Pipeline Extension to Proceed
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- Kinder Morgan Gas Volumes Climb as Power, LNG Demand Boost Pipeline Business
Comments