Japan’s Jera to sell part of its Freeport LNG stake to Japex

Japan’s Jera has agreed to sell a part of its stake in US LNG terminal operator Freeport LNG to compatriot Japan Petroleum Exploration (Japex).

Jera’s unit Jera Americas holds via Gulf Coast LNG a 25.7 percent interest in Freeport LNG Development, which operates the 15 mtpa liquefaction plant in Texas.

According to a statement issued by Jera on Thursday, the firm has approved a proposed agreement with Japex to sell 15 percent of its interest in Gulf Coast LNG to a US unit of Japex for about $380 million.

“As a result, Jera’s interest in FLNG will be equivalent to approximately 21.9 percent,” Jera said.

The joint venture of Tokyo Electric and Chubu Electric said it has decided to sell part of its interest as a result of a “careful assessment for optimizing Jera’s asset portfolio.”

Jera expects the agreement to be executed in June this year.

The company has completed in January 2022 its acquisition of the 25.7 percent stake in Freeport LNG Development from US-based Global Infrastructure Partners for $2.5 billion.

Prior to that, Jera already owned 25 percent of Freeport LNG train 1. It also has a deal for 2.32 mtpa of LNG for use in Japan and other importing countries.

Besides the Jera stake, Osaka Gas has a 10.8 percent stake in Freeport LNG while Freeport LNG Investments holds a 63.5 percent stake, according to Jera.

Freeport LNG boosting capacity

Earlier this month, Freeport LNG has resumed operations at all of its three liquefaction trains.

The LNG terminal operator said on March 20 that only the third liquefaction train was operating.

Freeport LNG said it has also completed most of the debottlenecking project which will increase the terminal’s production capacity from an excess of 15 mtpa to just over 16.5 mtpa.

Besides the debottlenecking project, Freeport LNG’s planned train 4, which has received all regulatory approvals, would add an additional 25 percent LNG production capacity.

Of the 15 mtpa of Freeport LNG’s export capacity, 13.4 mtpa has been sold to Osaka Gas, Jera, BP, TotalEnergies, and SK E&S.

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