Jera sets up LNG unit in Singapore
Japanese joint venture Jera has established a unit in Singapore to maximise the value of its LNG portfolio, the company said on April 1.
Jera LNG Portfolio Strategy (Jera LPS) will be responsible for negotiating revisions to terms and conditions and prices in Jera’s existing long-term LNG sale and purchase agreements (SPAs), analysing the LNG market based on the latest information, and formulating Jera’s LNG portfolio strategy.
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According to the company, the LNG environment has changed drastically over the past 10 years as LNG use has expanded, with increased complexity due to more intense competition, diversification of contract terms and price indices, increased commoditisation, improved spot market liquidity, and greater market price volatility.
As market complexity has increased, some terms and conditions in long-term LNG SPAs that Jera concluded in the past are no longer in line with actual conditions for either party. In addition, negotiating the revision of prices stipulated in long-term LNG SPAs requires the latest knowledge of and expertise in the LNG market.
“To address these challenges, Jera has established Jera LPS in Singapore as a new company with expertise and experience in both LNG market analysis and the fields of commerce, law, and negotiation,” the company said.
Jera is a joint venture between Japanese utilities Tepco and Chubu Electric.