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Jera said in a statement on Thursday that these deals advance its long-term strategy to build a “diversified and resilient LNG procurement portfolio in support of stable, secure energy for Japan and Asia.”
Through long-term offtake commitments, the agreements are expected to support economic activity that could contribute approximately $200 billion to US GDP and sustain 50,000 jobs annually, the firm said.
Jera said the total value of these transactions also surpasses Jera’s cumulative equity investment in the US, which currently stands at $6 billion.
US LNG procured through these partnerships supports Jera’s strategic priorities by offering “competitive pricing, flexible contract terms, and strong market fundamentals.”
All volumes will be delivered under FOB (free on board) terms with no destination restrictions, allowing Jera to optimize shipping routes and respond flexibly to evolving market conditions and LNG demand across the Asia-Pacific region., the firm said.
The new agreements build upon and enhance Jera’s existing operations in the US, which include offtake contracts totaling 3.5 million tonnes per year from Freeport LNG and Cameron LNG.
Jera also entered into an approximately 1 mtpa LNG offtake agreement with Venture Global LNG CP2 in 2023.
NextDecade and Commonwealth LNG SPAs
The deals include sales and purchase agreements with NextDecade and Commonwealth LNG.
Last month, Jera signed a 20-year deal to buy LNG from the planned fifth train at NextDecade’s Rio Grande LNG facility in Texas.
Under the terms of the sales and purchase agreement, power firm and LNG trader Jera will purchase 2 million tonnes per annum (mtpa) of LNG on a free on board basis at a price indexed to Henry Hub.
Moreover, Jera signed a 20-year SPA with Kimmeridge’s Commonwealth LNG.
Under this deal, Jera will purchase 1 mtpa of LNG for 20 years from Commonwealth’s 9.5 mtpa facility currently under development in Cameron, Louisiana.
Commonwealth has 4 mtpa of offtake under long-term agreements, and plans to take a final investment decision in the third quarter of this year.
Sempra Infrastructure, Cheniere
Sempra Infrastructure, a unit of Sempra, executed a non-binding HoA with Jera.
Under this 20-year deal, Jera will offtake 1.5 mtpa from the Port Arthur LNG Phase 2 development project in Jefferson County, Texas.
Sempra Infrastructure recently received non-FTA approval from the US Department of Energy for the second phase of its Port Arthur LNG export project.
The company still anticipates making a final investment decision on the second phase of its Port Arthur LNG export project in 2025.
The Port Arthur LNG Phase 1 project, with a capacity of 13 mtpa, is currently under construction and expected to achieve commercial operation in 2027 and 2028 for trains 1 and 2, respectively.
This expansion would double the project’s capacity to 26 mtpa.
In addition to this deal, Jera also signed a non-binding HoA with Cheniere Marketing, a unit of Cheniere.
Under this deal, which is for more than 20 years, Jera will purchase up to 1 mtpa from Cheniere’s Sabine and Corpus Christi facilities in Texas and Louisiana.
