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JERA's U.S. LNG supply to rise from 10% to nearly 30% of

its mix

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JERA signs heads of agreement with Sempra ( SRE ), Cheniere for

LNG

supply

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All four are FOB contracts with no destination

restrictions

By Yuka Obayashi, Katya Golubkova and Kentaro Okasaka

TOKYO, June 12 (Reuters) - JERA, Japan's biggest power

generator, has agreed to new supply deals for U.S. liquefied

natural gas (LNG) from four projects to diversify its global

portfolio away from its reliance on Australia, it said on

Thursday.

JERA plans to buy up to 5.5 million metric tons per annum

(mtpa) of U.S. LNG under 20-year contracts, with deliveries

starting around 2030. That total includes some previously

reported deals as well as newly announced agreements.

The move illustrates Japan's efforts to seek stable and

flexible LNG supply to strengthen energy security and meet

growing electricity demand driven by expanding data centres. The

country is the world's second-largest LNG importer after China.

JERA, Japan's biggest LNG buyer, has signed a heads of

agreement with Sempra Infrastructure for 1.5 mtpa from its Port

Arthur LNG phase 2 project and a HOA with Cheniere Marketing for

up to 1 mtpa from Corpus Christi LNG and Sabine Pass LNG.

The Japanese utility also signed a 20-year sales and

purchase agreement (SPA) with U.S. LNG developer Commonwealth

LNG for 1 mtpa from its Louisiana project. On Tuesday, sources

familiar with the negotiations told Reuters about the deal

though both companies declined to comment at the time.

The 5.5 mtpa figure also includes its deal announced on May

29 with NextDecade ( NEXT ) to buy 2 mtpa from its Rio Grande

LNG project.

All four are 20-year, free-on-board contracts with no

destination restrictions, although the Cheniere deal could go

beyond 20 years, JERA said.

"We made these decisions because cost-competitive and

flexible LNG is essential as we look towards the 2030s," JERA's

Global CEO and Chair Yukio Kani told Reuters.

He added that LNG has become increasingly important amid

rising power demand from data centres and the soaring costs of

cleaner alternatives like hydrogen and ammonia.

"We were also aiming to secure contracts with the projects

already under development and tied to the EPC (engineering,

procurement, and construction) agreements before the recent

surge in LNG project costs and interest rates," he said.

The announcement comes amid ongoing trade talks between

Japan and the United States, though Kani stressed there was no

government pressure behind the deals which he said were purely

private sector decisions.

"We are rebalancing towards the global supply mix," he said,

to reduce its weighting toward Australia.

After the new deals, the U.S. will supply nearly 30% of

JERA's LNG mix, up from 10% now. Oceania and Asia, including

Australia, currently account for more than half.

JERA, jointly owned by Tokyo Electric Power ( TKECF ) and

Chubu Electric Power ( CHUEF ), already buys U.S. supply from

Freeport LNG and Cameron LNG. In 2023, it signed a 20-year

contract to buy 1 mtpa from Venture Global's ( VG ) CP2 project.