The biggest Japanese LNG importer and largest power producer, JERA, plans to sell liquefied natural gas in the long term as part of a strategy to tap global LNG markets and sell any excess gas supply if domestic demand is low, a senior executive has said.
JERA wants to “identify additional markets where we can sell,” Irtiza Sayyed, chief executive officer of the newly-created JERA Global Energy Solutions, told Bloomberg in an interview published on Wednesday.
Earlier this summer, JERA said it is creating a wholly-owned subsidiary to develop and manage its LNG, upstream, low-carbon fuels, and shipping businesses.
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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.
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,” the company said in July.
Amid the current volatility and disarray in global LNG markets, JERA earlier this year 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.
JERA GES will look to seize market opportunities in LNG sales as many other importers are looking to diversify their gas supply following the Middle East crisis and the lack of regular LNG supply from Qatar and the United Arab Emirates (UAE) for months.
By Tsvetana Paraskova for Oilprice.com
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