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 gas business by fiscal 2035.

Jera unveiled on Thursday its new growth strategy over the next decade that integrates strategic business pillars and organizational edge.

The joint venture of Tokyo Electric and Chubu Electric strategically emphasizes three key business pillars: LNG, renewables, and hydrogen and ammonia.

Jera targets more than 35 million tons of LNG transaction volume, aims to achieve 20 GW (gigawatts) of renewable capacity, and targets about 7 million tons of hydrogen and ammonia handling volume by fiscal 2035.

It plans a total cash flow investment of 5 trillion yen ($32.38 billion) during over the next decade, or 1-2 trillion yen for each pillar with a built-in flexibility to make allocation changes between the three business areas if deemed suitable in case of external changes, it said.

Slashing emissions

Jera also aims to reduce its CO2 emissions intensity by 20 percent as of 2030, total CO2 emissions by 60 percent as of fiscal 2035 before achieving zero CO2 emissions from its domestic and overseas operations as of 2050.

To achieve these targets, Jera said it will phase out inefficient coal-fired thermal power by fiscal 2030.

Jera also intends to convert 100 percent of the other coal-fired power generation to ammonia by 2040’s, and eliminate coal completely.

Currently, Jera supplies one third of Japan’s electricity.

Japan is the second biggest LNG importer in the world after China.

One of world’s largest LNG players

Jera is one of the world’s largest LNG players with an integrated value chain, and it trades LNG via Singapore-based Jera Global Markets, a joint venture with France’s EDF in which Jera owns 66.67 percent.

According to Jera, it currently handles about 35 million tons of LNG and plans to boost this over 35 million tons by fiscal 2035.

The firm will continue to provide solutions to Japan and Asia and maintain its exposures in the global LNG market.

Jera said it buys LNG in S.E. Asia, Oceania, North America, Middle East, and sells it in S.E and S.W. Asia, Europe, etc.

The firm said its LNG value chain includes six gas fields in Australia, the Freeport LNG export terminal in the US in which it has a stake and offtakes volumes, 22 LNG carriers under long-term charters, 11 receiving terminals, and about 50 GW of capacity of gas thermal power.

Most Popular

LNG carrier arrives to load first LNG Canada cargo

The 174,000-cbm GasLog Glasgow has arrived at the LNG Canada jetty in Kitimat to load the first LNG cargo produced at the Shell-led terminal, an LNG Canada spokesperson told LNG Prime on Saturday.

Knutsen, Shell name ninth LNG newbuild

Norwegian shipowner Knutsen and UK-based energy giant Shell have named the ninth and final LNG carrier in a series of 174,000-cbm vessels.

BP seals LNG SPA with Italy’s A2A

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with Italian electricity and gas distributor A2A.

More News Like This

Woodside, Jera ink non-binding winter LNG supply deal

A unit of Australian LNG player Woodside and Japan's Jera have entered into a non-binding heads of agreement for the sale and purchase of LNG cargoes during Japan’s peak winter period.

Jera plans to build new LNG units at Sodegaura power plant

Japan’s Jera plans to build new LNG-fueled units at its Sodegaura power plant in the Chiba prefecture, as part of its plans to replace aging facilities.

Petronas, Jera strenghten LNG ties

Malaysia's Petronas and Japan's Jera have agreed to expand their collaboration across the gas value chain, including providing LNG supply for Japan, with the signing of a memorandum of understanding.

Japan’s Jera seals US LNG supply deals

Japan's power firm and LNG trader Jera has signed 20-year agreements to buy up to 5.5 million tonnes per year of LNG from the United States. The deals include an SPA with Commonwealth LNG and the previously announced SPA with NextDecade, as well as heads of agreements with Sempra Infrastructure and Cheniere.