Cheniere Signs 21-Year LNG Supply Deal with Japan’s JERA Starting 2029

Cheniere Energy has signed a 21-year LNG supply deal with Japan’s JERA to deliver 1 mtpa starting in 2029, with pricing tied to Henry Hub and a fixed liquefaction fee.

(P&GJ) — Cheniere Energy has signed a long-term agreement to supply liquefied natural gas (LNG) to Japan’s JERA, one of the world’s largest LNG buyers and the country’s top power producer, the companies announced Aug. 7.

Under the sale and purchase agreement (SPA), JERA will purchase approximately 1 million tonnes per annum (mtpa) of LNG from 2029 through 2050 on a free-on-board basis. The price will be indexed to the Henry Hub benchmark, plus a fixed liquefaction fee.

“We are pleased to enter into this multi-decade agreement with JERA, the largest power producer in Japan and one of the largest buyers of LNG in the world,” said Jack Fusco, Cheniere’s president and CEO. “This SPA fortifies our longstanding relationship with JERA, which is based upon years of cooperation and mutually beneficial LNG trade. We look forward to providing our flexible, reliable and cleaner burning LNG to JERA through 2050 under this new long-term agreement.”

Yukio Kani, global CEO and chair of JERA, said the agreement strengthens the company’s U.S. partnerships and supports energy stability in Asia.

“JERA and Cheniere have built a trusted relationship over many years, and we are pleased to extend this relationship further,” Kani said. “This long-term agreement with Cheniere—a global leader in LNG—supports JERA’s strategy to diversify and strengthen our LNG procurement portfolio, reinforcing our role as a long-term energy partner in the U.S. and deepening our commitment to securing reliable energy supplies.”