Japan’s Jera establishes LNG unit in Singapore

Japan’s LNG trading giant Jera said it has established a new unit in Singapore as a strategic base to maximize the value of the company’s LNG portfolio.

Through Jera LNG Portfolio Strategy, Jera would strive to “maximize the value of its LNG portfolio while contributing to the development of a healthy LNG market and to the stable supply of affordable energy,” it said in a statement.

The joint venture of Tepco and Chubu Electric said in the statement that Jera LPS started operations on Friday.

To achieve a stable supply of affordable energy, Jera said it aims to maximize the value of its LNG portfolio by building an “optimal LNG portfolio that takes into account stability, economic efficiency, and flexibility.”

LNG market changed “drastically”

Jera said the LNG environment has changed “drastically” over the past 10 years as LNG use has expanded, with increased complexity due to more intense competition, diversification of contract terms and price indices, increased commoditization, improved spot market liquidity, and greater market price volatility.

In line with this trend, many global LNG players are moving into Singapore, the “emerging center of LNG trading in Asia where human resources and information gather,” the firm said.

As market complexity has increased, some terms and conditions in long-term LNG sales and purchase agreements (SPAs) that JERA concluded in the past are no longer in line with actual conditions for either party, according to Jera.

In addition, negotiating the revision of prices stipulated in long-term LNG SPAs requires the “latest knowledge of and expertise in the LNG market.”

To address these challenges, Jera has established the new unit in Singapore as a new company with expertise and experience in both LNG market analysis and the fields of commerce, law, and negotiation.

Jera LPS would be responsible for negotiating revisions to terms and conditions and prices in Jera’s existing long-term LNG SPAs, analyzing the LNG market based on the latest information, and formulating the company’s LNG portfolio strategy, it said.

- Advertisements -

Most Popular

Samsung Heavy to sue Russia’s Zvezda over LNG carrier contract termination

South Korean shipbuilding giant Samsung Heavy Industries said it will sue Russian shipbuilder Zvezda after the latter decided to...

LNG freight rates, European prices climb

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet and European prices increased this week compared...

Excelerate says Bangladesh FSRU to resume ops by end of July

US-based Excelerate Energy expects its FSRU Summit LNG, which serves Bangladesh’s second LNG terminal located offshore Moheshkhali Island in...

More News Like This

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...

Australia’s Woodside gets $1.45 billion loan for Scarborough

Australian LNG player Woodside has secured a loan worth $1.45 billion from the state-owned Japan Bank for International Cooperation...

MOL and Jera seal another charter deal for newbuild LNG carrier

Japan’s shipping giant MOL has signed a new long-term deal to charter one newbuild liquefied natural gas carrier to...

Japan’s Jera plans to invest up to $13 billion in LNG

Japan's power firm and LNG player, Jera, plans to invest 1-2 trillion yen ($6.47-$12.96 billion) in its liquefied natural...