Japan's JERA Plans Expansive LNG Purchases from US
JERA, Japan's leading LNG importer, intends to increase its procurement from the United States to diversify its supply and meet burgeoning demand from data centers and AI advancements.
Ryosuke Tsugaru, JERA's LNG Division head, revealed plans to bolster exposure to US energy projects, acknowledging the importance of long-term sustainability in US LNG policies.
Currently, JERA sources almost half of its 30-35 million metric tons of annual LNG from the Asia Pacific region. Tsugaru aims to balance this concentration by diversifying the LNG supply portfolio, with an emphasis on US supply.
Despite current long-term contracts for 3.2 million tons from the US, JERA will closely monitor the sustainability of US LNG policies. Trump's initiatives to expedite oil and gas production and LNG project development have been welcomed by JERA.
Tsugaru also highlighted JERA's plans to engage with Middle East suppliers for a more geographically balanced energy portfolio. He expressed optimism about continuing the long-standing LNG partnership with Qatar, despite rising competition.
JERA anticipates positive natural gas and energy demand in Japan, fueled by the increasing need for stable power for data centers and AI. Despite project delays, JERA remains bullish about the market balance for the 2026-2029 period.