Key facts
- Japan's JERA is creating a new subsidiary, JERA Global Energy Solutions (JERA GES).
- JERA GES will focus on LNG, upstream, low-carbon fuels, and shipping.
- The subsidiary will be headquartered in Singapore.
- It aims to ensure a stable and diversified long-term LNG portfolio.
- JERA GES will also develop lower-carbon fuels such as ammonia and hydrogen.
- The move is a response to volatile and complex global energy markets.
Japan's largest liquefied natural gas importer and power producer, JERA, announced on Wednesday the creation of a new, wholly-owned subsidiary named JERA Global Energy Solutions (JERA GES). This strategic move is designed to navigate increasingly volatile and complex global energy markets.
JERA GES, which will be headquartered in Singapore, is intended to be a vertically integrated LNG company capable of rapid market responses while prioritizing Japan's energy security. The subsidiary's focus will be on developing a stable and diversified long-term LNG portfolio, balancing supply sources with market opportunities, and advancing lower-carbon fuels like ammonia and hydrogen.
The new entity will maintain close coordination with JERA’s existing power generation and domestic energy market functions. JERA GES will gradually assume JERA’s current long-term LNG and lower-carbon fuel business activities to ensure continuity for existing business relationships.
This development comes as Japan, one of the world's most energy import-dependent nations, seeks to secure alternative energy supplies. Amidst global LNG market disruptions, JERA recently finalized a 20-year contract with Malaysia's Petronas for 2 million tons of LNG annually, starting in 2028. JERA has also previously announced plans to significantly increase its LNG purchases from the United States.