TOKYO: Japan’s largest power generation company, JERA Co., has announced it will significantly increase imports of liquefied natural gas (LNG) from the United States through a series of new long-term supply agreements, marking a key milestone in Japan’s efforts to enhance energy security amid evolving trade negotiations with Washington.
The Tokyo-based utility confirmed it has signed 20-year contracts with four LNG projects based in Texas and Louisiana. The agreements are expected to enable JERA to procure an additional 5.5 million tonnes of LNG annually from the US, almost doubling its current import volume of 3.5 to 4 million tonnes.
“These new arrangements further our long-term strategy to build a diversified and resilient LNG procurement portfolio, supporting the stable and secure supply of energy for Japan and broader Asia,” the company said in a statement.
The development aligns with Japan’s ongoing discussions with the United States over trade and investment cooperation. Fuel and agricultural imports have been key bargaining chips as Japanese officials seek to ease punitive tariffs introduced under US President Donald Trump’s administration.
The US Department of the Interior welcomed the LNG agreements, describing them as a landmark in President Trump’s drive to expand American energy exports. Interior Secretary Doug Burgum said the commitment would generate nearly a quarter of a trillion dollars in economic impact and support over 50,000 jobs in the US LNG sector.
JERA, which supplies roughly 30% of Japan’s electricity, plays a critical role in the country’s energy landscape. Japan, one of the world’s most energy-dependent economies and the fifth-largest emitter of carbon dioxide globally, imported 65.9 million tonnes of LNG in 2024.
While Australia remained Japan’s largest LNG supplier last year, accounting for 41.6% of imports, Malaysia provided 15.6%, Russia 9.3%, and the US 8.4%, according to figures from Japan’s Ministry of Economy, Trade and Industry.
The strengthened LNG partnership with the US comes on the heels of Japanese Prime Minister Shigeru Ishiba’s February commitment to increase annual Japanese investment in the United States to US$1 trillion, signalling a broader shift in bilateral economic ties.
-AFP
