Cheniere Energy, through Cheniere Marketing, and JERA have signed a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA), running until 2050.
Under the SPA, JERA has agreed to purchase approximately 1.0 million tonnes per annum (mtpa) of LNG from Cheniere Marketing on a free-on-board basis from 2029 through 2050.
The purchase price for LNG under the SPA is indexed to the Henry Hub price, 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.
“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,” said Jack Fusco, Cheniere’s President and Chief Executive Officer.
“JERA and Cheniere have built a trusted relationship over many years, and we are pleased to extend this relationship further. 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.
“Together, we will continue to contribute to the energy security, stability, and sustainability of Japan and the broader region for decades to come,” added Yukio Kani, Global CEO and Chair of JERA.