KKR Makes Largest Ever Clean Energy Investment With $4.2B EDF Purchase
What I Cover My focus spans the global energy landscape and the technologies reshaping it, specifically focusing on oil and gas, renewables, and tech-driven market…
Japan’s JERA is creating a wholly-owned subsidiary to develop and manage its LNG, upstream, low-carbon fuels, and shipping businesses, the biggest Japanese LNG importer and largest power producer said on Wednesday.
The new company, JERA Global Energy Solutions (JERA GES), will be the Japanese utility giant’s response to increasingly volatile and complex energy markets. JERA GES will be a vertically integrated LNG company which can quickly respond to the market needs while maintaining security of supply for Japan as its highest priority, the company said.
JERA GES, which will be headquartered in Singapore, will focus on “developing a stable and diversified long-term LNG portfolio that balances supply sources with market opportunities, while advancing lower-carbon fuels such as ammonia and hydrogen,” JERA said.
JERA GES will maintain close coordination with JERA’s power generation and domestic energy market functions as Japan’s biggest utility will look to enhance the country’s energy security.
JERA GES will gradually take over JERA’s existing long-term LNG and lower-carbon fuel business activities according to a planned transfer schedule to keep continuity for existing business relationships.
Amid the current volatility and disarray in global LNG markets, JERA last month signed a contract for the supply of liquefied natural gas with Malaysia’s state major Petronas for a period of 20 years, starting in 2028.
Japan is one of the most energy import-dependent countries in the world, with a lot of its oil and gas previously coming from the Middle East. The war-related disruption in export flows has prompted Japan to rush to secure alternative supplies.
The Petronas deal is for 2 million tons of liquefied gas annually, adding to earlier supply deals agreed by JERA. The company, which is the largest buyer of liquefied natural gas in the world, last year presented plans to triple its purchases from the United States alone to as much as 5.5 million tons annually. That would have been a 10% increase on its current imports from the U.S., making up a third of its total LNG purchases.
EU Industry Splits Over Emissions Trading Scheme Overhaul
EU Industry Splits Over Emissions Trading Scheme Overhaul
What I Cover My focus spans the global energy landscape and the technologies reshaping it, specifically focusing on oil and gas, renewables, and tech-driven market…
Oil Prices Plunge as U.S. and Iran Reach Deal to Reopen Strait of Hormuz
Australia's 344-Million-Barrel Oilfield Could Finally Get the Green Light
Oil Prices Rebound as U.S.-Iran Peace Talks Are Postponed
Kuwait Says Oil Output Won't Recover for 10-12 Weeks After Hormuz Reopens
Guyana’s Oil Boom Gets a Major Boost From $100 Crude
How Long Can Demand Destruction Keep a Lid on Oil Prices?
The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
Nothing contained on the Web site shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction.
Merchant of Record: A Media Solutions trading as Oilprice.com