Cheniere Energy Signs Long-Term LNG Deal with Japanese Giant JERA

Cheniere Marketing, a subsidiary of U.S. player Cheniere Energy, has recently secured a significant long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) with Japan’s leading energy company, JERA.

Under the terms of the agreement, JERA will acquire approximately 1 million tonnes per annum (mtpa) of LNG from Cheniere Marketing on a free-on-board basis from 2029 through 2050. The purchase price for the LNG is linked to the Henry Hub price, and it includes a fixed liquefaction fee.

Jack Fusco, Cheniere’s President and Chief Executive Officer, expressed his enthusiasm about the deal, stating, “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.”

This agreement follows a heads of agreement (HoA) signed between Cheniere and other U.S. players with JERA earlier in the year. JERA has also secured LNG volumes through agreements with Sempra, Woodside Energy, and ADNOC.

Yukio Kani, Global CEO and Chair of JERA, commented on the deal, stating, “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.”

Meanwhile, Cheniere Energy has recently made a final investment decision (FID) for the Corpus Christi Midscale Trains 8 & 9 and debottlenecking project. This project will add two new trains next to its Corpus Christi Stage 3 project (CCL Stage 3) on the La Quinta Ship Channel in South Texas.