The agreement will ensure a market for JERA’s surplus LNG. Under its terms, JERA may freely decide sales amounts in accordance with domestic supply and demand. If such transactions matching supply and demand increase, Japan’s LNG procurement prices could be reduced hereafter.
Currently, LNG transactions are generally based on long-term contracts and resale of surplus LNG is not allowed. Under the arrangements this time, JERA will sell LNG to Europe that it procures from the U.S. under a contract allowing resale.
