Japan's JERA Signs LNG Supply Deal With Shizuoka Gas

Japan’s JERA Co., Inc. on Friday announced it has entered into a Heads of Agreement (HOA) with Shizuoka Gas Co., Ltd. for the sale of LNG.

JERA will supply 70,000 tons of LNG per year to Shizuoka Gas's LNG terminal for a period of five years beginning in 2022. The LNG sold will be from JERA’s portfolio, the company said.

“This HOA includes a provision for linking the sales price index to US. natural gas. JERA believes this will contribute to Shizuoka Gas’s diversification strategy for LNG price indices,” JERA stated.

The company plans to have detailed discussions with Shizuoka Gas to conclude an unconditional LNG sales and purchase agreement.

JERA is one of the world’s largest-class LNG buyers. It is a joint venture between Tokyo Electric Power Co and Chubu Electric to secure stable and competitively priced LNG.