*

JERA's US 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

(Adds companies reactions and context at paragraphs 3, 5 and

15-19)

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 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.

Of the 5.5 mtpa announced on Wednesday 2.5 mtpa are

non-binding agreements, also called Heads of Agreement (HOA).

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.

The move also boosts U.S. President Donald

Trump's efforts to expand LNG exports from the United States,

already the world's top shipper of the super-cooled fuel, to

help domestic producers and improve the trade balance with

Japan.

Doug Burgum, the U.S. Interior Secretary, said at an event

at the Department of Energy headquarters in Washington that the

agreements are about prosperity and peace.

"When we can sell energy to our friends and allies, our

great ally like Japan, so that they don't have to buy it from

our adversaries, that makes the world a more secure place."

Among the agreements, Japan's biggest LNG buyer signed an

HOA with Sempra Infrastructure for 1.5 mtpa from its Port Arthur

LNG phase 2 project and an HOA with Cheniere Energy 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 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, although 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.

REBALANCING SUPPLIES

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.

Cheniere said in the last decade it has found it challenging

to find a Japanese buyer for its LNG.

"We're honoured that off-taker is Japan's, and the world's,

largest buyer of LNG." Cheniere Chief Commercial Officer Anatol

Feygin said at the event on Wednesday.

Sempra ( SRE ) said it was happy to work with JERA.

"With this announcement, we continue to make steady progress

towards reaching a final investment decision for the project,"

said Justin Bird, chief executive officer of Sempra

Infrastructure.

Commonwealth LNG said it was delighted to be partnering with

JERA, considering the Japanese buyer's prominent role and

extensive experience along the full LNG value chain.

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.