Cheniere and JERA Sign Long-Term LNG Deal for 1.0 mtpa Through 2050

Cheniere Energy and JERA Co. have signed a long-term LNG sale and purchase agreement. JERA will purchase approximately 1.0 million tonnes per annum of LNG from Cheniere on a free-on-board basis from 2029 through 2050. The purchase price is indexed to the Henry Hub price, plus a fixed liquefaction fee. The agreement strengthens their longstanding relationship and supports JERA's strategy to diversify and strengthen its LNG procurement portfolio.

Cheniere Energy and JERA Co. have signed a significant long-term LNG sale and purchase agreement, further solidifying their strategic partnership. Under the 20-year agreement, JERA will purchase approximately 1.0 million tonnes per annum (tpy) of LNG from Cheniere on a free-on-board basis, starting from 2029 through 2050 [1].

The purchase price is indexed to the Henry Hub price, plus a fixed liquefaction fee. This agreement strengthens their longstanding relationship and supports JERA's strategy to diversify and strengthen its LNG procurement portfolio. The deal builds upon several recent agreements signed by JERA with US LNG suppliers, aiming to secure up to 5.5 million tpy of LNG [1].

Cheniere Energy, a leading LNG infrastructure company, owns and operates several terminals, including the Sabine Pass LNG terminal in Louisiana and the Corpus Christi LNG terminal in Texas. The company's recent quarterly earnings report showed a 28.0% year-over-year revenue increase, although EPS of $1.57 missed analyst expectations [2]. Despite this, several institutional investors, including Blair William & Co. IL, have increased their stakes in Cheniere Energy, reflecting confidence in the company's growth prospects [2].

The agreement between Cheniere Energy and JERA Co. is part of a broader trend in the LNG market, where companies are securing long-term supply contracts to ensure a steady and reliable LNG supply. This trend is driven by the increasing demand for LNG, particularly from Japan and other Asian markets, and the need for energy security [1].

References:
[1] https://www.ogj.com/pipelines-transportation/lng/article/55306907/sempra-jera-sign-long-term-lng-supply-deal-for-pre-fid-port-arthur-phase-2
[2] https://www.marketbeat.com/instant-alerts/filing-blair-william-co-il-has-1174-million-position-in-cheniere-energy-inc-nyselng-2025-08-05/