JERA Co Inc and Woodside Energy Group Ltd have finalized an agreement for the Australian company to export liquefied natural gas (LNG) to the Japanese power utility in the winter months for five years.The companies already have an existing contract under which Woodside is to deliver 400,000 metric tons a year of LNG to Japan. The 10-year agreement is to fulfill its first cargo this year on a delivered basis, as announced September 18, 2024.
Under the new deal, Woodside will deliver the volumes on an ex-ship basis between the months of December and February from 2027. Three cargoes totaling about 200,000 metric tons will be delivered per year, JERA said in a press release Wednesday.Under the five-year contract, Woodside is to deliver about 200,000 metric tons a year of LNG to Japan during winter starting 2027.JERA Co Inc and Woodside Energy Group Ltd have finalized an agreement for the Australian company to export liquefied natural gas (LNG) to the Japanese power utility in the winter months for five years.
The companies already have an existing contract under which Woodside is to deliver 400,000 metric tons a year of LNG to Japan. The 10-year agreement is to fulfill its first cargo this year on a delivered basis, as announced September 18, 2024.
Under the new deal, Woodside will deliver the volumes on an ex-ship basis between the months of December and February from 2027. Three cargoes totaling about 200,000 metric tons will be delivered per year, JERA said in a press release Wednesday.
“Gas-fired power generation plays a critical role in meeting peak energy demand and balancing seasonal fluctuations –Â challenges that are becoming more pronounced as renewable energy expands”, JERA said. “Securing sufficient LNG supply during the winter months, when global gas demand surges, is essential to maintaining a stable electricity supply in Japan”.
“The volumes supplied to JERA will be sourced from Woodside’s global LNG portfolio, leveraging assets such as Scarborough, North West Shelf, Pluto LNG and LALNG, once it is operational”, Woodside said in a separate online statement about the new agreement.
JERA owns 15.1 percent in the Scarborough field offshore Western Australia, part of the broader Scarborough Energy Project.