Cheniere and JERA sign a 21-year LNG deal for 1 mtpa supply from 2029–2050, reinforcing long-term energy cooperation.
Cheniere Energy, Inc., a leading U.S. liquefied natural gas (LNG) producer, and JERA Co., Inc., Japan’s largest power generation company, have jointly announced a landmark long-term LNG sale and purchase agreement (SPA). The deal, signed between Cheniere Marketing, LLC (a subsidiary of Cheniere) and JERA, marks a significant expansion of the two companies’ strategic partnership.
Under the terms of the SPA, JERA will procure approximately 1.0 million tonnes per annum (mtpa) of LNG from Cheniere Marketing. Deliveries will be made on a free-on-board (FOB) basis, beginning in 2029 and continuing through 2050, representing a multi-decade supply commitment. Pricing for the LNG will be tied to the U.S. Henry Hub natural gas benchmark, with the addition of a fixed liquefaction fee, ensuring a transparent and stable cost structure.
Jack Fusco, President and Chief Executive Officer of Cheniere, expressed enthusiasm for the agreement, emphasizing JERA’s stature as both Japan’s largest electricity producer and one of the most significant LNG purchasers worldwide. “We are delighted to enter into this long-term arrangement with JERA,” Fusco said. “Our relationship is built on years of collaboration and mutually beneficial trade. This agreement enhances that bond and guarantees the delivery of Cheniere’s flexible, reliable, and cleaner-burning LNG to JERA well into the middle of the century.”
Yukio Kani, Global CEO and Chair of JERA, echoed these sentiments, highlighting the trust and cooperation that have characterized the companies’ long-standing relationship. “JERA and Cheniere have established a deep level of trust over many years,” Kani noted. “This long-term deal with one of the world’s foremost LNG suppliers supports our strategy to diversify and reinforce our LNG procurement portfolio. It strengthens our position as a dependable energy partner for the United States while ensuring reliable fuel supplies for Japan and the wider region. Together, we will continue to contribute to the security, stability, and sustainability of energy systems for decades to come.”
The agreement holds significant importance for both companies. For Cheniere, it ensures a steady, long-term customer for its LNG production, supporting its position as a global leader in the sector. For JERA, it provides supply security and diversification at a time when global energy markets face heightened volatility. Moreover, the deal aligns with both parties’ commitment to cleaner energy solutions, as LNG is considered a lower-carbon alternative to other fossil fuels.
This SPA further strengthens U.S.-Japan energy ties, contributing to Japan’s energy security while enabling Cheniere to expand its global footprint. By securing this agreement, both companies demonstrate their shared commitment to long-term cooperation, energy reliability, and sustainable development in the Asia-Pacific region.
