Jera pens 20-year LNG deal with Venture Global

Japan’s Jera has signed an agreement with Venture Global to purchase approximately 1mn metric tons/year of LNG for 20 years produced from the CP2 project in the US, it said on April 28. 

This is a destination-free FOB contract, which enables Jera to secure LNG in a flexible manner and is expected to help with the capability to respond to volatility in the domestic electricity supply and demand, the company added.

CP2 LNG is Venture Global's third project and is expected to commence construction later this year. To date, the company has announced SPAs for over a third of the 20mn mt/yr nameplate facility with active discussions ongoing for the remainder of its capacity.

This deal follows Jera purchase of the inaugural commissioning cargo of LNG exported from Venture Global's first project, Calcasieu Pass. 

Last month, Venture Global reached a financial close and took a final investment decision on the $7.8bn second phase of its 20mn mt/year Plaquemines LNG terminal in Louisiana. The first 10mn mt/yr phase at Plaquemines was sanctioned in May 2022.

Jera said it will continue to strive for flexible procurement to contribute to fuel supply stability and a stable supply of energy in Japan.