JERA, Japan's largest LNG importer and power producer, plans to sell liquefied natural gas on the global market to capitalize on excess supply when domestic demand is low. The move is part of a strategy to tap into international markets and diversify its portfolio. The company established JERA Global Energy Solutions, headquartered in Singapore, to manage its LNG, low-carbon fuels, and shipping businesses.
Japan's efforts to diversify its energy sources and JERA's strategy to monetize excess LNG supply highlight the ongoing shifts in global energy markets, driven by security concerns and the pursuit of new market opportunities.
JERA, Japan's largest importer of liquefied natural gas and its biggest power producer, intends to sell LNG on the global market as part of a strategy to capitalize on excess supply when domestic demand is low. The move aims to tap into international markets and diversify its portfolio, according to a senior executive.
Irtiza Sayyed, CEO of the newly established JERA Global Energy Solutions (JERA GES), told Bloomberg in an interview published Wednesday that the company wants to "identify additional markets where we can sell." JERA GES, which will be headquartered in Singapore, is designed to be a vertically integrated LNG company capable of responding quickly to market needs while prioritizing Japan's energy security. The company also aims to advance lower-carbon fuels like ammonia and hydrogen.
Earlier this year, amid volatility in global LNG markets, JERA signed a 20-year contract with Malaysia's state-owned Petronas for LNG supply, commencing in 2028. Japan, highly dependent on energy imports, has been seeking alternative supplies following disruptions related to the war in Ukraine and ongoing supply issues from Qatar and the United Arab Emirates.