JERA Secures Long-Term LNG Supply Deal in Japan

Japan’s largest power generator, JERA, has signed a seven-year LNG supply agreement with Hokkaido Gas, securing up to three cargoes per year starting in 2027 and reinforcing domestic energy supply resilience.

TOKYO (P&GJ) — JERA, Japan’s largest power generation company, has signed a long-term liquefied natural gas (LNG) supply agreement with regional utility Hokkaido Gas, expanding its domestic sales portfolio while reinforcing fuel security in northern Japan.

Under the sale and purchase agreement, JERA will supply two to three LNG cargoes per year beginning in 2027, equivalent to roughly 130,000 to 200,000 metric tonnes annually, on a delivered ex-ship (DES) basis. The contract runs for seven years and will be sourced from JERA’s global LNG portfolio.

The agreement strengthens supply resilience for Hokkaido Gas, which serves one of Japan’s coldest regions, while providing JERA with additional long-term offtake anchored in its home market.

JERA said the deal aligns with its broader strategy to diversify LNG sales while maintaining flexibility across its portfolio as demand patterns evolve in Japan and the wider Asia-Pacific region.

The company has been actively expanding and rebalancing its LNG portfolio, following recent supply agreements in India and continued investments across Asia, the Middle East, and the United States.

JERA aims to leverage its trading and optimization capabilities through JERA Global Markets to manage market volatility, improve cost competitiveness, and deepen partnerships with domestic and regional energy buyers.