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Jera, a joint venture of Tepco and Chubu Electric, announced on Monday the signing of its first long-term SPA to supply LNG outside Japan with Torrent Power, one of India’s leading integrated power utility companies.
Under the agreement, Jera will supply four LNG cargoes per year, approximately 270,000 tonnes per annum, on a delivered ex-ship (DES) basis from its extensive LNG portfolio.
According to Jera, this supply is scheduled for 10 years, commencing in 2027.
The LNG procured under this agreement will be strategically utilized by Torrent Power, including to operate its 2,730 MW portfolio of combined cycle gas-based power plants in India, to meet the country’s rising power demand, support peak demand periods, and balance renewables generation.
Jera said it will also support the growing LNG requirement of the Torrent Group’s city gas distribution (CGD) arm – Torrent Gas, to ensure supply of gas for households, commercial and industrial consumers, and compressed natural gas (CNG) vehicles.
The firm noted that the partnership strategically leverages the complementary seasonal demand patterns of Japan and India.
By supplying to Torrent Power during India’s high demand windows, Jera can optimize utilization of its global fleet during Japan’s lower-demand months, enhancing overall supply stability across both markets, it said.
Building LNG portfolio
Looking ahead, Jera said it will continue to build a robust LNG portfolio across the Middle East, Asia, and the United States to strengthen resilience against market volatility.
Leveraging Jera Global Market’s trading and optimization capabilities, the company aims to enhance cost competitiveness and expand its LNG sales footprint into the Asian markets.
In October, Jera signed a deal with Williams and GEP Haynesville II to acquire 100 percent of their respective interests in the South Mansfield upstream asset located in western Louisiana’s Haynesville Shale basin.
The Haynesville acquisition builds on its substantial and growing presence in the US, including its June announcement of the largest offtake of US LNG from a single buyer — 5.5 million tonnes per year for 20 years — and the Blue Point low-carbon ammonia development project.
Jera owns 66.67 percent of Jeragm, while EDF Trading, a unit of French state-controlled utility EDF, holds the rest.
In April 2019, Jera and EDF Trading merged their LNG trading and optimization activities.
According to Jeragm’s website, the JV has a fleet of 18 chartered LNG carriers supporting its global trading operations.
Jeragm manages and operates third-party supply agreements from Australia, Southeast Asia, the Middle East, and the US Gulf and optimizes term contracts on behalf of Jera and EDF Trading.
The company’s gross executed LNG trade volume reached about 46 million tons in fiscal 2023.
Last year, Jera said it plans to invest 1-2 trillion yen in its LNG business by fiscal 2035.