Energy group JERA Co., Inc. has signed a liquefied natural gas (LNG) sale and purchase agreement with Hokkaido Gas Co., Ltd., one of Japan’s key regional gas distributors. Under the terms of the contract, JERA will supply between two and three cargoes per year on a delivered ex-ship (DES) basis, representing an annual volume between 130,000 and 200,000 tonnes. The contract runs for seven years starting in 2027.
Strengthening domestic supply
This agreement allows JERA to consolidate its position in the domestic market while addressing national energy security concerns. The partnership with Hokkaido Gas reinforces LNG supply resilience in Japan and reflects a strategy aimed at diversifying long-term sales channels. The group operates a global LNG portfolio managed through various subsidiaries, including JERA Global Markets.
This move comes amid continued volatility in the LNG markets, particularly in Asia. By strengthening ties with regional players like Hokkaido Gas, JERA aims to ensure greater delivery stability in response to demand shifts and geopolitical uncertainties. The Japanese firm recently signed a separate LNG sale deal with India-based power company Torrent Power.
Regional and international LNG objectives
As part of its “Growth Strategy for Realising the 2035 Vision”, JERA aims to strengthen its position as a global LNG leader by building an integrated value chain. The agreement with Hokkaido Gas aligns with this approach by expanding its network of domestic partners while maintaining global supply flexibility.
The group also plans to continue investing in key markets across Asia, the Middle East, and the United States to balance its LNG portfolio. Trading, optimisation, and operational capabilities developed through JERA Global Markets will be leveraged to improve cost competitiveness and adapt volumes to the needs of regional clients.
