Japan's JERA signs agreement with Woodside for winter LNG supply

Japanese energy company JERA has signed a non-binding heads of agreement with Woodside Energy for the purchase of Liquefied Natural Gas (LNG). The company stated the agreement aims to secure a stable supply during Japan’s winter peak demand period.

The agreement outlines the annual purchase of three LNG cargoes, equivalent to approximately 0.2 million tonnes per annum (MTPA), during the winter months of December to February.

The supply term is for five years, beginning in the 2027 fiscal year. The LNG will be supplied from Woodside’s portfolio on a delivered ex ship (DES) basis.

The supply will include LNG from the Scarborough gas field in Australia, a project supported by a loan from the Japan Bank for International Cooperation (JBIC).

JERA noted that securing a reliable LNG supply is increasingly important for gas-fired power generation, which it stated plays a critical role in meeting peak demand and balancing the grid as the adoption of "renewable energy" grows.