Cheniere Inks LNG Supply Deal with Japan's JERA

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Cheniere Energy (Houston, Texas), the leading U.S. supplier of liquefied natural gas (LNG), said it inked a long-term supply agreement with Japan's JERA (Tokyo).

JERA is a 50:50 joint venture between TEPCO Fuel & Power and Chubu Electric Power formed in the wake of the Fukushima Daiichi nuclear disaster in 2011. As Japan lacks few energy resources of its own, the company is among the leading importers of LNG.

On Thursday, the company agreed to purchase 1 million metric tons of LNG per year from Cheniere's marketing division from 2029 through 2050. Prices will be indexed to Henry Hub, the U.S. benchmark for the price of natural gas, plus a liquefaction fee.

"This long-term agreement with Cheniere--a global leader in LNG--supports JERA's strategy to diversify and strengthen our LNG procurement portfolio, reinforcing our role as a long-term energy partner in the U.S. and deepening our commitment to securing reliable energy supplies," Yukio Kani, the chairman of JERA, said in a statement.

JERA in May unveiled plans to sell a 15% stake in Gulf Coast LNG Holdings, which holds a minority stake in the Freeport LNG terminal, to its Japanese counterpart Japan Petroleum Exploration Company Limited (Tokyo), but still held a small stake in the terminal. JERA has a 20-year purchase agreement for some 2.3 million metric tons per year (MTPA) of LNG from Freeport.

Freeport has a nameplate export capacity of 15.3 MTPA. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Plant Database can view a plant profile here.

Meanwhile, it was a stellar second quarter for Cheniere Energy, riding on the back of the surge in LNG exports from the United States. The United States is the world leader in natural gas production and the largest exporter of LNG by volume.

Cheniere on Thursday reported net income of $1.6 billion, compared to just $400 million during the first quarter of the year. Looking ahead, the company said it expected tailwinds for both income and deliveries for the remainder of 2025.

"Our strong financial and operational results year-to-date, coupled with our constructive outlook and visibility for the remainder of the year, have enabled us to tighten our full year 2025 consolidated adjusted EBITDA and distributable cash flow guidance ranges," said Jack Fusco, Cheniere's president and chief executive officer.

Earnings before interest, taxes, depreciation and amortization (EBITDA) is a measure of profitability of the company's operating business only.

On production growth, the company said its received authorization to build two new trains, or liquefaction units, at its Corpus Christi LNG export facility, with a final investment decision (FID) expected before the end of the year.

IIR data show Corpus Christi running at about 94% of its design capacity. The facility can export 13.5 MTPA, making it one of the larger LNG terminals in the United States.

Subscribers can view a detailed plant profile of Corpus Christi here.

The LNG market can expect a supply glut to 2030, according to the International Energy Agency. U.S. companies also need special permits to send LNG to countries without a U.S. free-trade deal, and it's unclear how U.S. President Donald Trump's aggressive trade policies would impact those arrangements.

The Trump administration brokered a revised trade agreement with Japan in July.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).