Japan’s largest power producer, JERA Co., has entered into a strategic agreement with Australian energy major Woodside Energy to secure liquefied natural gas (LNG) supplies specifically during the winter season, the companies confirmed on Friday.
The Heads of Agreement was formalised at the LNG Producer-Consumer Conference held in Tokyo, an event co-hosted by Japan’s Ministry of Economy, Trade and Industry (METI) and the International Energy Agency.
Under the terms of the deal, Woodside will deliver approximately 200,000 metric tonnes of LNG per year to JERA between December and February, beginning in fiscal year 2027. The supply arrangement will remain in place for five years.
This seasonal supply model diverges from traditional annual term contracts and introduces a more flexible procurement strategy. Yuya Hasegawa, Director at METI, noted during a press conference that the structure of the agreement reflects a growing need for adaptability in response to changing climate conditions.
“This arrangement allows JERA to avoid taking unnecessary shipments during milder-than-expected winters, offering a layer of operational efficiency,” Hasegawa stated.
He further expressed the ministry’s expectation that other Japanese firms may explore similar supply models with alternative LNG providers, citing potential benefits to Japan’s long-term energy security.
“If this type of agreement becomes more common, it could strengthen the country’s ability to maintain stable procurement,” he added.
JERA, a joint venture between Tokyo Electric Power Company and Chubu Electric Power Company, remains Japan’s foremost LNG importer and a key player in the global energy landscape.
